BUSINESS BRIEFS
SEC takes aim at rumors intended to affect securities
Advertiser Staff and News Services
WASHINGTON — The Securities and Exchange Commission said yesterday it is immediately opening a probe to prevent the spread of false information used to manipulate securities prices.
SEC Chairman Christopher Cox said the investigation is aimed at "ensuring investors continue to get reliable, accurate information about public companies in the marketplace."
The probe comes amid a new bout of turmoil that has gripped investors. Questions have been swirling about the financial health of mortgage giants Fannie Mae and Freddie Mac as well as Lehman Brothers Holdings Inc.
Earlier this year, a run on Bear Stearns pushed the investment bank to the brink of bankruptcy and into a takeover by JPMorgan Chase. Bear officials blamed market rumors for the run.
CHAVEZ THREATENS TO CUT OFF U.S. OIL
MARACAIBO, Venezuela — President Hugo Chavez says if Exxon Mobil Corp. dares to freeze Venezuela's assets, he will not sell any more oil to the United States.
Chavez said yesterday that while the U.S. oil giant lost an international court case to freeze the assets in March, it is still trying.
He said that if Exxon Mobil succeeds, oil prices will reach $300 a barrel. Chavez also accused the company of stealing Venezuela's oil.
Venezuela took control of four major oil projects last year, prompting Exxon Mobil to leave the country. The two sides have since been battling over compensation.
MICROSOFT LOWERS XBOX CONSOLE COST
SEATTLE — Microsoft Corp. is trimming the price of its Xbox 360 video game console to make way for a new model with a bigger hard drive.
Starting yesterday, Microsoft's midrange Xbox 360 console with a 20-gigabyte hard drive will cost $299 in the U.S., down from $350.
Blogs have carried rumors of the decision since June, when photos depicting the $299 price tag were posted to the Internet.
An updated Xbox 360 is set to arrive in stores in early August. The $350 replacement will sport a 60GB hard drive, significantly more space for storing the games, TV shows and movies Microsoft sells on its Xbox Live Marketplace Web site.
FRESH JALAPENOS IN SHORT SUPPLY
Imports of jalapeno peppers from Mexico have slowed amid government testing for salmonella, and importers say shortages are likely if the bottleneck continues.
"If this goes on for two more weeks, there's a strong likelihood you won't get a jalapeno in your burrito," says Will Steele, CEO of a leading pepper importer, Frontera Produce of Edinburg, Texas.
Frontera is still shipping, but some importers have stopped, saying the tests take so long the peppers rot in the warehouse. Wholesale prices have doubled as grocers and restaurants pursue limited supplies from southeastern growers.
Hot peppers are suspected sources of a salmonella outbreak that has sickened 1,065 people in the United States' largest food-borne illness episode in decades.
The Food and Drug Administration last week advised high-risk consumers, such as the young and the old, to avoid fresh jalapeno and serrano peppers. The FDA first linked the outbreak in June to some types of raw tomatoes, which are still suspects.
INDYMAC FREEZES HOME EQUITY LOANS
The federal regulators who seized IndyMac Bank late last week reiterated yesterday that its branches would be open as usual today, but said home equity lines of credit issued by the bank would be frozen pending a review of each account.
At a news conference at the bank's Pasadena, Calif., headquarters, officials of the Federal Deposit Insurance Corp. sought to assure depositors — at least those who had less than $100,000 on deposit or less than $250,000 in a retirement account — that their money was safe and would be fully accessible.
