White House asks insurer to explain rate hike The Obama administration asked California's largest for-profit health insurer to justify plans to raise customers' premiums by as much as 39 percent, a move that could affect about 800,000 people. In a letter to the president of Anthem Blue Cross, Health and Human Services Secretary Kathleen Sebelius called the planned increases "extraordinary." In a statement, Anthem Blue Cross of California blamed the weak economy and rising health care costs, while pledging to reply to Sebelius' query promptly.
Former Merrill chief Thain to lead CIT Group CIT Group Inc., the lender that is trying to regain its former stature after almost collapsing during the financial industry crisis, has hired former Merrill Lynch & Co. CEO John Thain as its chairman and chief executive. CIT, which lends to more than 3,000 businesses including supermarkets and department stores, went through bankruptcy reorganization late last year after it failed to restructure billions of dollars in debt.
American Airlines to charge $8 for a pillow If you want a pillow and blanket in coach on American Airlines, it's going to cost you. The airline will charge $8 for a pillow and blanket in coach class for domestic trips and some international flights longer than two hours, beginning May 1. The international flights are to and from Canada, Mexico, Hawaii, the Caribbean and Central America. Spokeswoman Andrea Huguely said it was an economic decision.
Guilty plea in big insider trading case A former Intel executive pleaded guilty to charges he fed confidential information about the computer-chip maker to wealthy hedge fund manager Raj Rajaratnam, his old friend and central figure in a massive insider trading case. Rajiv Goel, 51, of Los Altos, Calif., became the ninth defendant to plead guilty out of 21 charged so far in the case.
Magazine sales down 9% in second half of '09 Purchases of U.S. magazines at newsstands and other retail outlets fell 9 percent in the second half of 2009, a slight improvement from the 12 percent year-over-year decline in the first half of the year. Those figures released by the Audit Bureau of Circulations show how the weak economy continues to batter the magazine industry at a time when consumers have plenty of free reading alternatives available online.
Cablevision splits off Madison Square Garden Investors will get a chance to bet directly on the fortunes of the New York Knicks and Rangers and their home arena, Madison Square Garden, beginning Tuesday. Cablevision Systems Corp. is splitting into two, returning the company to its roots as mainly a provider of subscription TV. The newly separate Madison Square Garden Inc. will include the arena, the basketball and hockey teams, regional sports channels and famed theaters such as Radio City Music Hall.
FROM NEWS SERVICES
