IBT Staff Reporter

The U.S. Mortgage Bankers Association said on Wednesday it will ask Congress to transform mortgage lenders Fannie Mae, Freddie Mac into several smaller, privately held companies that would issue mortgage securities with a government guarantee.

Stock index futures were flat on Wednesday ahead of private labor market data seen as a precursor to a key government monthly jobs report later in the week, which investors will keenly await after a three-day slide in stocks.

The level of U.S. commercial real estate deals seen in the boom years of 2005 through 2007 may take a generation to return, according to a report by real estate services company Jones Lang LaSalle Inc.

Japan's Nikkei stock average slid 2.5 percent on Wednesday, dragged down by exporters hit by a stronger yen amid renewed worry about the health of the U.S. financial system.

Rally's Over?; Betting Big on Banks; Madoff Family Targeted

Planned layoffs at U.S. firms fell in August, suggesting less stress on the labor market and improvements in consumer spending and the broader economy in the coming months, a report released on Wednesday showed.

Oil rose above $68 a barrel on Wednesday, after a 3 percent drop in the previous session, as data showing a fall in U.S. crude stocks raised expectations of demand growth in the world's biggest energy consumer.

Planned layoffs at U.S. firms fell in August, suggesting less stress on the labor market and improvements in consumer spending and the broader economy in the coming months, a report released on Wednesday showed.

Stock index futures were flat on Wednesday ahead of private labor market data, even as BP Plc shares rose after it reported a giant oil discovery in the Gulf of Mexico.

As shares of bailed-out banks bottomed out earlier this year, stock options were awarded to their top executives, setting them up for millions of dollars in profit as prices rebounded, according to a report released on Wednesday.

At least 20 top hedge funds boosted their positions in financial institutions in the latest quarter in a sign that Wall Street is ready to bet on more risky sectors in the hope of longer-term rewards.

Credit Suisse's Private Banking head Walter Berchtold said the bank is on the look out for acquisitions, but would not comment on whether this included a bid for private banking assets of ING .

China is backsliding on reforms to open up its economy to foreign business, thereby hindering competition and imperiling its shift to a new model of sustainable growth, the European Union Chamber of Commerce in China said on Wednesday.

Top mobile phone maker Nokia on Wednesday bolstered its smartphone line-up to better battle Apple and announced a new location-based service with social networking site Facebook.

World stocks fell close to 1 percent on Wednesday after an overnight sell off on Wall Street, with both Asia and Europe rattled by concerns over the sustainability of this year's equity rally.

Asian shares pulled back on Wednesday after revived worries about the health of U.S. banks slammed Wall Street, even as upbeat Australian growth figures reassured investors on the economic recovery's staying power.

Vevo, an online music video start-up backed by two major music labels and supported by YouTube's technology platform, is in talks with CBS Corp and NBC to license and develop shows for the Web, according to two people familiar with the talks.

Sony Corp plans to launch 3D TVs next year in a move to spur sales amid slowing growth in flat TV demand, the Financial Times said.

The court-appointed trustee in charge of the Bernard Madoff Ponzi case is preparing to file civil complaints against Madoff's two sons, as well as his brother, CBS News reported on Tuesday.

Reports that Bank of America Corp (BAC.N) is in talks with the U.S. Treasury to repay $20 billion of its federal bailout was met by the market with joy -- and a little skepticism.

Oil edged above $68 a barrel on Wednesday, reversing part of the previous day's slide of 3 percent, after industry data showed a sharp fall in U.S. crude stocks, boosting hopes of a demand rebound in the world's top energy user.

The biggest U.S. Internet service providers urged regulators to adopt a conservative definition of broadband, arguing for minimum speeds that were substantially below many other nations.

Italian aerobatic jets, paragliders with fireworks, dancers and an equestrian fantasia electrified Tripoli on Tuesday night when Libya marked 40 years since a bloodless coup brought Muammar Gaddafi to power.

Private contractors hired by the U.S. government have jeopardized security at the American embassy in Kabul with lewd, drunken conduct and an understaffed guard force at a time of rising violence in the Afghan capital, a watchdog group said on Tuesday.

A majority of Google mail users were unable to access the service Tuesday afternoon, in a rare widespread outage of the popular Gmail service.

The United States has written checks for $214 million of the $1.4 billion promised to Mexico in 2007 to help fight the country's powerful drug cartels, Washington's top anti-drug diplomat said on Tuesday.

Oil edged above $68 a barrel on Wednesday, reversing part of the previous day's slide of 3 percent, after industry data showed a sharp fall in U.S. crude stocks, boosting hopes of a demand rebound in the world's top energy user.

The Saudi interior ministry on Tuesday issued a recording of a telephone conversation between the prince who heads the kingdom's anti-terrorism campaign and an Al Qaeda militant who tried to assassinate him days later.

Canada's main opposition Liberal Party on Tuesday vowed to bring down the minority Conservative government, leaving the fate of Prime Minister Stephen Harper in the hands of other parties.