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"The loans sold to Beal, including the loans originated by the FDIC itself, violated Old Superior and New Superior's underwriting guidelines and almost every consumer protection and fair lending law, regulation and standard," Beal said in a court filing.
PHARMACEUTICAL
Cholesterol Drug Fails in Study
Merck and Schering-Plough's cholesterol drug Vytorin failed to prevent complications from heart-valve disease, a study showed. Shares of Schering fell 12 percent, and Merck dropped 6 percent.
Vytorin prescriptions have dropped since an earlier study found it worked no better than Zocor, another Merck drug and an ingredient in Vytorin, in reducing plaque buildup in the brain's main artery.
The two companies delayed releasing quarterly results until the end of the day to allow researchers to discuss the findings with reporters and analysts. Merck said its second-quarter profit rose 5 percent, to $1.77 billion, as it cut costs to offset falling sales of Vytorin, Zetia and asthma drug Singulair. Overall, revenue fell 1 percent, to $6.05 billion.
Schering-Plough's second-quarter profit dropped 23 percent, to $398 million on one-time charges. Sales rose 55 percent to $4.92 billion.
EARNINGS
Bank of America has become the latest in a string of big banks whose second-quarter earnings, while hurting from the impact of the credit crisis, still managed to beat Wall Street expectations. The company said that its profit fell 41 percent, to $3.41 billion from $5.76 billion in the comparable period a year earlier. Revenue grew 3.5 percent to $20.32 billion. The nation's second-largest bank said losses in its struggling mortgage operations were offset by gains in other parts of the company.
Texas Instruments reported a 4 percent drop in its second-quarter profit. Profit for the period ended June 30 was $588 million. Revenue declined 2 percent, to $3.35 billion. The chipmaker said a weakened economy and slower sales for cellphone chips dragged earnings down.
American Express said its second-quarter profit slid 38 percent due to a decline in consumer spending and deteriorating credit indicators. Profit for the period ended June 30 was $653 million, and revenue rose 8 percent, to $7.48 billion.
TREASURY BILLS
T-bill rates fell. The discount rate on three-month Treasury bills auctioned yesterday fell to 1.52 percent from 1.61 percent last week. Rates on six-month bills fell to 1.92 percent from 1.955 percent. The annualized return to investors is 1.547 percent for three-month bills, with a $10,000 bill selling for $9,961.58, and 1.966 percent for a six-month bill selling for $9,902.93. Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, fell to 2.21 percent last week from 2.25 percent two weeks ago.
Compiled from reports by Washington Post staff writers, the Associated Press and Bloomberg News.
