President Bush vetoed a bill imposing tight quotas on imports of textiles and shoes, saying the measure "picks the pockets of U.S. consumers" by driving up prices by $2,600 per family over five years.
Travelers Corp. said it will report a $500 million loss in the latest quarter, slash its dividend to 40 cents a share from 60 cents and add $650 million to its reserves for potential mortgage loan and real estate losses.
Charles H. Keating Jr., the former owner of failed Lincoln Savings and Loan, pleaded innocent to securities fraud charges stemming from the sale of $250 million of now-worthless junk bonds.
The Senate passed legislation allowing federal regulators to close financial institutions convicted of money laundering. The bill also requires that more information be made available to consumers about savings accounts, authorizes new designs for the reverse sides of coins and calls for changes in government securities to prevent counterfeiting.
MCI's long-distance customers in the metropolitan Washington area temporarily lost service yesterday afternoon when a switch failed, the company said. The 45-minute outage affected about 20 percent of incoming and outgoing calls. Service was restored about 3:30 p.m.
Trans World Airlines laid off 430 maintenance and clerical employees and said it is considering schedule reductions that could result in more layoffs.
Interest rates on 30-year fixed mortgages fell to 10.08 percent from 10.22 percent and adjustable-rate notes fell to 8.25 percent from 8.28 percent, the Federal Home Loan Mortgage Corp. said.
American Airlines was sued by frequent fliers, who alleged the airline reneged on an agreement to honor its obligations under the frequent-flier program.
The Air Force was criticized by Rep. John Conyers (D-Mich.), chairman of the House Government Operations Committee, for awarding two new contracts to a division of the Northrop Corp. that is under suspension for allegedly falsifying test results on the Harrier jet fighter-bomber and air-launched cruise missile.
Woolrich, the manufacturer of outdoor clothing, will lay off more than half its 2,600 employees nationwide because it said it has few orders for deliveries beyond December.
The U.S. and Bulgaria reached a provisional agreement on a trade accord between the two countries. The agreement would cover trade and financial matters, intellectual property and tourism. The pact also would extend to Bulgaria status as a "most favored nation."
USAir said William F. Loftus resigned his positions as senior vice president for finance of USAir and vice president for finance of USAir's parent, USAir Group.
Westinghouse Electric received a $241.7 million Navy contract for nuclear propulsion research and development.