Facing a lawsuit over deceptive mortgage practices, Bank of America Corp. is agreeing to pay more than $8 billion to modify hundreds of thousands of loans to keep people from losing their homes. Charlotte, N.C.-based Bank of America said Monday it will modify troubled mortgages with up to $8.4 billion in interest rate and principal reductions for nearly 400,000 customers of Countrywide Financial Corp., the troubled mortgage lender it acquired last summer. Separately, Bank of America reported third-quarter earnings, reduced its dividend, and planned a $10 billion stock offering. DEO Kenneth D. Lewis said it is "prudent" to raise capital.Eli Lilly to pay $6 billion to buy ImClone
Eli Lilly & Company's winning bid of more than $6 billion for cancer drugmaker ImClone Systems means a billion-dollar payday for former rival bidder Bristol-Myers and vindication for corporate raider and ImClone Chairman Carl Icahn. Indianapolis-based Lilly said Monday it would pay $70 per share for New York-based ImClone. The acquisition, Lilly's largest ever, helps the Indianapolis drugmaker prepare for looming patent expirations and builds "a true oncology powerhouse," Lilly CEO John Lechleiter said.Reliant Energy may be for sale
Reliant Energy, which supplies electricity to nearly 2 million customers in Texas and the Mid-Atlantic region, served notice that it may be shopping for a buyer Monday as a credit crisis that has reshaped Wall Street spreads. The Houston-based company announced last week that it was forced to raise $1 billion in new capital under less favorable conditions after it failed to meet standards outlined in an arrangement with Merrill Lynch & Co.Treasury to increase debt auctions
The Treasury Department said Monday it will increase its debt auctions to handle the $700 billion rescue program for the country's financial system. The Treasury said it would increase the size of its auctions in coming weeks and is considering other options to handle the financing needs for the biggest government bailout in history. One of the options being considered was the reintroduction of the three-year note beginning next month.EBay cutting 1,600 jobs --10% of workforce
After a series of changes designed to draw more people to its online marketplace, eBay Inc.'s latest alteration is aimed at its own employees. The auction-site operator said Monday it will cut about 1,600 jobs, 10 percent of its workforce, in its largest round of dismissals ever. EBay Chief Executive John Donahoe said in an interview that the cuts were not a reaction to the weak economy.Iceland wants more power in financial arena
Iceland's government is proposing legislation that'll give it sweeping new powers over the country's financial system after a day in which share trading in its major banks was suspended. Prime Minister Geir H. Haarde warned that the heavy exposure of the country's banking sector to the global financial turmoil was putting the nation at risk. Earlier Monday, the government also put 100 percent guarantees on savers' deposits.