The current account deficit shrank to a six-year low of $22.94 billion during the first three months of the year, the government said.
Freddie Mac introduced Gold Participation Certificates, mortgage pass-through securities that make monthly principal and interest payments to investors after 45 days. Freddie Mac's competitor in the secondary mortgage market, Fannie Mae, makes payments after 55 days. Meanwhile, Citicorp Mortgage agreed to swap $5 billion of new mortgages for Freddie Mac Mortgage PCs and Gold PCs in what Freddie Mac called the largest secondary mortgage-market transaction ever.
Banks posted their second consecutive quarterly decline in consumer credit delinquencies. The delinquency ratio on closed-end installment loans was 2.46 percent at the end of the quarter, an improvement from 2.64 percent at the end of the fourth quarter of 1989.
The Taj Mahal, Donald Trump's debt-burdened casino, won $36.5 million in May. The Taj had a daily average "win" of nearly $1.2 million -- around what analysts consider the break-even point.
Rebuild America, a research group that favors a national industrial policy, said U.S. industrial strength may end unless President Bush adopts an economic policy that provides more assistance to develop new technologies. The report was prepared by MIT economist Lester Thurow.
Chrysler and Renault abandoned their joint venture in developing and building a new sport-utility vehicle, but Chrysler plans to continue developing it alone.
UAL Corp. lost two key executives. John C. Pope, chief financial officer, said he will resign once a union-led buyout of United Airlines is completed, and Barry A. Kotar, who heads United's computer reservation system, resigned to join Northwest Airlines.