IBT Staff Reporter

CIT Group Inc, the consumer and commercial finance company, on Tuesday said it has closed its mortgage lending operations, the latest to abandon the sector amid difficult market conditions.

House prices suffered their worst decline since at least 1987 in the second quarter from a year earlier as the housing downturn has deepened, according to the S&P/Case-Shiller U.S. National Home Price Index.

EarthLink Inc said on Tuesday it will cut about 900 jobs, or nearly half its staff, as part of a restructuring to reduce costs at the Internet service provider.

Wall Street should keep its eye on a little-known coterie of investment companies run by European banks called structured investment vehicles, or SIVs, which are having a tough time raising short-term funding.

One week into the Federal Reserve's effort to grease the rusty wheels of the U.S. credit system, Wall Street is wondering just who needs the money because there's no line at the window.

Economic confidence among U.S. small business owners fell in August as a slowing housing market soured sentiment, and 41 percent said they had recent cash flow troubles, according to a survey released on Monday.

Consumer sentiment took its sharpest plunge in nearly two years during August while home prices swooned in the second quarter, according to reports that show the housing crisis taking its toll. As Wall Street was gripped by a credit squeeze, the Conference Board's index of confidence dropped nearly 7 points to 105.0, its lowest reading in a year.

The multi-billion-dollar market for securitized student loan debt, a financial mainstay supporting U.S. higher education, is facing new stresses as Congress moves to reshape the troubled student loan industry.

Tokyo shares slipped in thin trade on Tuesday as investors watchful of currency moves sold Toyota Motor Corp and other exporters on a stronger yen, and banks and brokerage firms fell after their U.S. peers slipped the previous session.

Concerns about the U.S. economy prompted investor caution on Tuesday, cutting into what had been a recovery in stocks and boosting the yen.

Russian music download site www.allofmp3.com has said it will resume business soon, after a Moscow court ruled its operation is in accordance with Russian law.

A Microsoft document format that may be adopted as an international standard this weekend is a ploy to lock in customers, who could lose control over their own data in a worst-case scenario, critics say.

Home Depot Inc said on Tuesday it agreed to cut the price of its supply division sale to buyout firms by $1.8 billion, as a housing market drop and a credit crunch forced all sides to renegotiate. As part of the new agreement, Bain Capital Partners, The Carlyle Group and Clayton, Dubilier & Rice will pay $8.5 billion for the division.

Holders of about 8 million shares in Magna International class A stock, or about 8 percent of the total outstanding, have confirmed they voted against a plan to sell 20 percent of the auto-parts maker to a Russian billionaire, the Globe and Mail newspaper said.

Pharmacy-benefits manager Medco Health Solutions Inc. said on Tuesday it agreed to buy PolyMedica Corp. for $1.2 billion, in a move to expand its diabetes care services.

OPEC Secretary-General Abdullah al-Badri said on Tuesday that the subprime crisis in financial markets has made it very difficult for the group to gauge demand for crude but supply levels were adequate for now.

Since taking the helm at Taiwan's top PC maker two years ago, J.T. Wang has trumped his opponents by building Acer Inc into the world's No.3 computer maker.

Shares in Taiwan's Acer Inc fell sharply on Tuesday after investors chafed at the premium the PC maker was paying for loss-making U.S. rival Gateway to gain the spot as the world's No. 3 maker.

Institutional money manager State Street Corp faces $22 billion exposure to asset-backed commercial paper conduits, the off-balance sheet vehicles that have caused problems for rivals in recent weeks, British newspaper The Times reported.

Hewlett-Packard Co said on Monday it is launching a $300 million marketing campaign to promote Web-based printing services as it seeks new uses for printers, the company's most-profitable business.

Internet TV, mobile TV and video on demand may be the talk of the technology sector but when it comes to buying decisions at this week's IFA electronics fair, television sets are set to be bigger business than ever.

NYSE Euronext and Australia's ASX Ltd may be interested in buying part of Nasdaq Stock Market Inc's 31 percent stake in London Stock Exchange Plc, a person familiar with the matter said.

Oil prices held around $72 on Tuesday, with U.S. refinery shutdowns reviving supply concerns just as peak summer driving demand draws to a close.

The yen rose while high-yielding currencies came under pressure on Tuesday as concerns over the health of the U.S. economy weighed on global equities, prompting investors to trim exposure to risky assets.

Stock index futures fell on Tuesday due to renewed global credit concerns and caution ahead of reports on home prices and consumer confidence. Banking stocks took an early beating after MarketWatch reported that Merrill Lynch had downgraded to neutral from buy investment banks Bear Stearns Cos., Lehman Brothers and Citigroup.

With the Made in China brand under threat, steering the world's third-largest exporter through the public relations minefield of food and product safety is one of its leaders' biggest immediate tasks.

Frantic Greek villagers fled as fire engulfed their homes, farms and forests on Tuesday in an inferno that has killed 63 people and prompted public outrage at the government's handling of the crisis.

Taliban insurgents will release all 19 South Korean Christian volunteers they have held hostage in Afghanistan since mid-July, South Korea ' s presidential Blue House said on Tuesday.

Video-sharing Web site YouTube has met with harsh criticism in Germany for hosting clips that incite racial hatred, according to a news report due to be broadcast on German public TV late on Monday.