IBT Staff Reporter

The U.S. federal government will keep about $1.2 billion in payments collected to backstop money market funds even after its insurance program ends on Friday, a U.S. Treasury official said.

The Australian Dollar has held onto its recent spectacular gains and opens on Friday at 0.8710. The Aussie ended yesterday's local session at a new 13-month high of 0.8774 as stronger-than-expected economic data from the United States adds to signs the global economy is edging towards recovery.

About 40 percent of all U.S. junk bonds outstanding in late 2008 will likely default by 2013 as government aid measures end and a wall of corporate debt comes due, Bank of America Merrill Lynch said on Thursday.

The U.S. Federal Reserve's balance sheet grew to its largest since May on a hefty increase in its holding of mortgage-backed securities, Fed data showed on Thursday.

The U.S. House of representatives on Thursday voted to cut off all federal money to the Association of Community Organizations for Reform Now (ACORN).

The U.S. military closed down its largest detention center on Thursday in Iraq, as it moves to release thousands of detainees or transfer them to Iraqi custody before the end of the year.

Palm Inc posted a smaller-than-expected loss on sales of its Pre smartphone, but a tepid second-quarter sales forecast and a plan to raise fresh capital helped snuff out a rally and send shares down 2 percent after hours on Thursday.

U.S. short-term borrowing costs edged up on Thursday on concern the Federal Reserve could signal it is ready to tighten monetary policy sooner than traders had thought.

Kentucky chicken farmer Kevin Skinner won America's Got Talent Wednesday night for singing I don't want to miss a thing by Aerosmith.

Ever wondered what it would be like to have Lance Armstrong pedal your bike for you? Well now you can find out, sort of.

Skype founders Janus Friis and Niklas Zenstrom filed a copyright infringement suit against current owner eBay and the members of an investment group who recently agreed to acquire a majority stake in Skype.

Standard & Poor's may downgrade around $578 billion of collateralized debt obligations backed by corporate debt as a result of changes the rating agency is making to the way it rates the deals, S&P said on Thursday.

New York's troubled public transit system has a $9.9 billion funding gap in its 2010-2014 capital program which it may have to close with debt absent any other source of funds, the state comptroller said on Thursday.

The Federal Reserve bought $25.45 billion net of agency mortgage-backed securities in the latest week, the New York Fed said on its website on Thursday.

Palm Inc reported a smaller-than-expected loss on strong smartphone sales, sending its shares 6 percent higher on Thursday

Telecom equipment maker Nokia Siemens Networks said on Thursday it has made the world's first call using next generation LTE mobile technology.

A man with a rare case of amnesia has been identified by people who know him but he still can't remember who he is.

U.S. stocks slipped on Thursday after a three-day runup on concern recent gains were overextended despite the latest round of solid economic data.

Palm Inc reported a smaller-than-expected loss on strong smartphone sales, sending its shares 6 percent higher on Thursday.

When the Emmy-nominated television stars begin their stroll up the red carpet Sunday at U.S. TV's top honors, one nominee will be on the wrong side of the line between celebrities and onlookers, Carrie Ann Inaba.

Home sales in the San Francisco Bay area fell 14.3 percent in August from July as buyers found fewer bargains due to a slimmer inventory of foreclosed properties, MDA DataQuick said on Thursday.

New construction of U.S. homes and permits for future building scaled a nine-month high in August, and the number of people filing new claims for jobless benefits fell last week, suggesting a recovery was underway.

U.S. tax authorities on Thursday said that 1.4 million taxpayers have used an $8,000 homebuyer tax credit so far and reminded homebuyers they need to close on a purchase before the December 1 deadline to qualify.

The federal government and states are girding themselves for the next foreclosure crisis in the country's housing downturn: payment option adjustable rate mortgages that are beginning to reset.

Publishers of general news would find it hard to charge for their content online because too much free content is available, the chief executive of Google Inc said on Thursday.

Bernard Madoff once slept there. Soon, someone else will. The imprisoned swindler's Montauk, New York, home, located on a beach with sweeping views of the Atlantic Ocean, has been sold for more than the $8.75 million asking price, a spokeswoman for broker Corcoran Group said on Thursday.

U.S. households' net worth rose by $2 trillion to $53.1 trillion in the second quarter, the first increase since before the recession began in 2007, Federal Reserve data showed on Thursday.

Shares of American Airlines parent AMR Corp soared as much as 25 percent on Thursday after the company said it had raised $2.9 billion in troubled credit markets and would shift flying to more profitable routes.

Discover Financial Services posted stronger-than-expected quarterly earnings on Thursday as bad loans grew less than feared and the sixth-largest U.S. credit card issuer trimmed costs.