Stirke Out?

Strike over?... The United Auto Workers union and General Motors Corp reached a tentative contract on Wednesday, ending a national strike by 73,000 workers.

The agreement allows GM to shift more than $50 billion of retiree health-care liabilities to an independent union-aligned trust.

Laid off... Bank of America Corp said it will lay off about 2,500 workers in Illinois and 1,500 in Michigan over the next two years...

in connection with its $21 billion purchase of LaSalle Bank Corp from Dutch bank ABN AMRO Holding NV .

Services based... Ian Shepherdson, chief U.S. economist at High- Frequency Economics:

"Raw materials prices have been on the rise since the end of 2001, without much noticeable effect on finished goods prices.

In part, that's a reflection of the services based nature of the U.S. economy, with labor costs a more significant input than commodities
."

Failed Bailouts... Agreements to acquire mortgage companies including Accredited Home Lenders Holding and PHH Corp., have collapsed this year .

PHH, a lender that agreed to be bought by General Electric Co. and Blackstone Group LP, says the sale may unravel because of a lack of financing.

Buyout firm Lone Star Funds tried to walk away from a takeover of Accredited before renegotiating the purchase last week at a price that was 22% lower.

Today, Fremont General Corp., the California thrift ordered in March to stop making home loans, said billionaire banker Gerald J. Ford doesn't want to proceed with a rescue plan.

The Federal Deposit Insurance Corp. ordered the company in March to stop making home loans to unqualified borrowers and rebuked executives for failing to manage risks.

Fremont hasn't filed an annual report for 2006 or any quarterly reports this year. Fremont shares fell 20% on the news.

Belly up... American Home Mortgage Investment Corp. was given approval yesterday for procedures to sell the loan servicing business. The opening bid of $435 million comes from Wilbur Ross's AH Mortgage Acquisition Co.

Bashful, Dopey or Sickly?... UK financial institutions made no bids for the $20 billion that the BOE (Bank Of England) offered to ease strains in the money market.

Nick Parsons, at National Australia Bank in London: "Either the system is stabilizing, or the individual institutions were fearful of the stigma attached to using the facility. You can't tell which."

The UK central bank or "Fed" doesn't disclose the identity of bidders in its auctions.

Banks may also have postponed bids until future auctions as they adjust their loan securities to make them eligible for the Bank of England's lending standards,

John Wraith, at Royal Bank of Scotland Group: "Several of the big mortgage lenders are working on the construction of mortgage-backed securities which will be easier for them to tender as collateral.

This may mean that they intend to use this facility
."

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