S&P settles for 1.38 billion in U S rating scandal
S&P agreed to pay 1.38 billion in a settlement with the U S government and 19 states over its ratings during 2004 to 2007. The deal resolves a Justice Department suit accusing the agency of knowingly overrating toxic mortgage securities. Attorney General Eric Holder hailed the accord while critics urged further reforms.
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GM and Toyota Lead January Auto Sales Rise
January auto sales jumped 14 percent to 1.15 million, the best January in nine years, driven by low interest rates and cheap gas. GM gained 18 percent, Toyota 16 percent, with Ford Nissan Fiat Chrysler Honda also up. Buyers snapped up big SUVs like the Tahoe and Yukon amid falling gas prices and steady promotions.
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Home price gains weaken in December as sales slow
CoreLogic says national home values rose 5 percent in December from a year earlier, down from 5.5 percent in November. Slower price growth and lower mortgage rates may revive sales after years of gains, with the biggest annual gains in Colorado Texas New York Nevada and Michigan and declines in Maryland Vermont and Connecticut.
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Buffett Bet Shows Index Funds Outperform Hedge Funds
Buffett's 10 year wager with Protege Partners LLC shows the Vanguard S&P 500 Admiral fund up 63.5 percent while Protege funds rise about 196 percent. A winner’s charity will receive at least $1 million as both sides’ stakes are invested in Berkshire Hathaway stock, now near $1.7 million.
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