Digest

Chrysler recalls Dodge Caliber over sticky pedals

Saturday, June 5, 2010

AUTOMOTIVE

Chrysler recalls Dodge Caliber over pedals

Chrysler is recalling nearly 35,000 Dodge Calibers to fix a potential problem with sticky gas pedals, the same issue that has affected millions of Toyotas.

Chrysler said it will recall about 25,000 Calibers in the United States from the 2007 model year and a limited number of 2007 Jeep Compass sport-utility vehicles to inspect the ones built between March and May 2006. The remaining vehicles are in Mexico, Canada and elsewhere.

The pedals were made by CTS Corp., the Elkhart, Ind., company that manufactured pedals involved in the recall of more than 2 million Toyotas earlier this year. Chrysler said it did not consider the problem a safety defect but decided to conduct a safety recall anyway.

-- Associated Press

BANKING

Regulators force closures in Neb., Miss., Ill.

Regulators on Friday shut down a Nebraska bank that has struggled under the weight of soured loans and drawn scrutiny from federal authorities since early last year. Two small banks were also shuttered.

The Federal Deposit Insurance Corp. took over TierOne Bank, based in Lincoln, Neb., with about $2.8 billion in assets. Great Western Bank, based in Sioux Falls, S.D., agreed to acquire its assets and deposits. In addition, the FDIC and Great Western Bank agreed to share losses on $1.9 billion of TierOne Bank's loans and other assets. The failure is expected to cost the deposit insurance fund $297.8 million.


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