National Briefing

HOUSING

Frank Calls for Foreclosure Freeze

The chairman of the House Financial Services Committee called on lenders to stop filing foreclosures until a new foreclosure-prevention program takes effect.

On Wednesday, Rep. Barney Frank (D-Mass.) had called on lenders to make immediate use of the program, which is included in a massive housing package that passed the House this week and is expected to be put to a vote in the Senate this weekend. President Bush has said he will sign the measure. Frank yesterday corrected those remarks, noting that the program would not take effect until Oct. 1.

The program seeks to move as many as 400,000 distressed borrowers into more affordable loans backed by the federal government. Erick Gustafson, a lobbyist for the Mortgage Bankers Association, said loan servicers would consider Frank's request.

LEGAL

U.S. May Expand Stockman Case

U.S. prosecutors may file new charges or add defendants in the case against four former Collins & Aikman officials including chief executive David Stockman, a budget director in the Reagan administration.

Stockman and three other former Collins & Aikman executives are charged with defrauding investors in the now-bankrupt auto parts maker. Prosecutors say the executives issued false financial reports and engaged in a phony rebate scheme to raise capital and avoid defaulting on credit agreements.

Maker of Scrabble Knockoff Sued

Hasbro, the company that owns the North American rights to Scrabble, sued the creators of the Scrabulous program, less than two weeks after the release of an authorized version of Scrabble for Facebook. Hasbro said in its lawsuit that Scrabulous, has attracted some half-million daily users, violates its copyright and trademarks. Separately, Hasbro asked Facebook to block the game.

Video game maker Electronic Arts released an official version for U.S. and Canadian Facebook users last week as part of a broader, year-old licensing deal with Hasbro, yet Facebook users have continued to spend countless hours on the unauthorized Scrabulous.

CONSUMER SAFETY

Kroger Chain Removes Jalapeños

The nation's largest traditional grocery chain has removed jalapeño peppers from its stores as a precaution. Spokeswoman Meghan Glynn said Kroger decided to halt jalapeño sales after the Food and Drug Administration reported Monday that a McAllen, Tex., distributor was recalling jalapeños because they had the potential to be contaminated with salmonella. She said Kroger removed jalapeños the next day, even though none of its supply was from the Texas distributor.

Glynn said Kroger had received no complaints from customers suspecting jalapeños made them ill.

EARNINGS

Southwest Airlines posted a second-quarter profit due to higher fares and financial deals that locked in lower fuel costs. Net income for the period ended June 30 was $321 million, up 15 percent from last year. Revenue increased 11 percent, to $2.87 billion.

3M said its second-quarter profit rose slightly on international growth, led by sales in Latin America. Net income for the period ended June 30 was $945 million, up 3 percent from $917 million last year. Revenue rose 10 percent, to $6.74 billion. The maker of Post-Its and Scotch tape benefited from the weak dollar, as two-thirds of 3M sales came from overseas.

Compiled from reports by Washington Post staff writers, the Associated Press and Bloomberg News.