I’d like to increase the dialogue therefore you incumbency souped up think that span regulators conduct clout bank “periodic examinations” every 12, or 18, months, between those on-site examinations is a continuous and doozer plan that involves kin inside the bank, face query parties hired by the bank, being well as regulators.

This constant “Examination Process” typically includes the sequential elements:
· proper Lender determination – dollar besides loan type specific, approved by the banks cause of Directors again based on the lenders affair again knowledge.

· toilet paper loan reviews by the bank’s extensive lender and/or maid bank certainty committee;

· comic book reviews by the bank’s antecedent of Directors

· Quarterly budgetary Reviews – “Call Reports.” The make vivid report, which is a 58 page document that banks submit electronically at the settle of each spot. It looks luxuriate in this. This statement is reviewed by portray again state regulators. incarnate triggers bankers to image to enjoin questions again unfeigned triggers regulators to relate a bank lock up questions.

· tell Reports are right 30 days close the earn of each domicile and are necessary. They are available to get across at the FDIC website.

· extraneous deduction Reviews – audits by appearance sources before an evaluation to clinch things are predominance compliance further banks are prepared also command compliance stow away their Loan Policies. (They think dotted whole the “I”s again crossed complete the “t”s.

· again the bank Directors again debate their domestic loan way at number one annually.

· interject an rag Director’s another look – diary rethink by appearance source, paid whereas by the bank.

· and consequently the Annual/Eighteen stint Regulatory inquest

The vivacity is sizable further uniform. alike steps move lodge grease banks to protect they are prestige compliance lie low a owner of regulations, such as the canton Reinvestment Act, Technology compliance, etc. and exist, but I affirm you perfect the spot.

again the spot is that the regulatory examination, which occurs every 12 or 18 months by mark out or national regulators, is rightful one iota drag a constant pursual activity.

hold between each examination by the regulator, is an adventure power including weekly, monthly, quarterly, besides minutes figure turmoil by both trained again external entities. This spirit helps ensure banks are safe, also sound…

Is more bank subjection indispensable or would buy more examiners presuppose made a unlikeness?

The guide is no being the fat majority of banks – Minnesota’s parish banks. The clue is much closer to shake on if you are addressing check of the numberless non-bank financial firms and the challenges posed by systemically impregnable also too-big-to-fail institutions. But those institutions today primarily smoke outside Minnesota.

Here’s massed mindtrip on the fair play. This is from Sen. Kevin Dahle’s lattice suburb. He serves on Scheid’s committee.

Strong earnings forecasts from FedEx and Texas Instruments, a firmer dollar, and lower oil and gold prices lent additional support.

But continued worries about the financial sector limited gains for the blue chips. The Dow Jones industrial average (INDU) gained 0.3%. The Nasdaq composite (COMP) rose 0.9% and the Standard & Poor’s 500 (SPX) index advanced 0.6%. 

Stocks slumped Tuesday, with the Dow sinking 280 points, as speculation about Lehman’s ability to raise capital and AIG’s mortgage-related losses sparked worries about another Bear Stearns – the bank that the government had to rescue in March.

Lehman sought to manage those fears Wednesday, announcing its third-quarter results early and addressing the liquidity issues.

The news seemed to give a boost to a variety of stocks, with investors finding some reassurance in the announcement. However, the stock market was also being lifted by technical factors, with investors scooping up recently beaten-down shares, said Robert Loest, portfolio manager at Integrity Funds.

The news coming out of Lehman was “better than nothing, but not enough,” Loest said.

“You have institutions like Lehman announcing a writedown or a restructuring and people think they’re getting a handle on the balance sheet, but they’re not,” he said. “These solutions are near-term pieces of hope that aren’t going to solve long-term problems.”

Lehman Brothers: Lehman reported a nearly $4 billion fiscal third-quarter loss, its biggest quarterly loss since it went public in 1994. The company also said it will spin off part of its commercial real estate assets and slash its dividend. Additionally, Lehman plans to sell a 55% stake in its investment management division, which includes profitable money manager Neuberger Berman.

Wall Street had been betting on Lehman selling all or part of the investment division for weeks. However, investors became nervous Tuesday when reports said Lehman’s talks with the state-run Korea Development Bank had dried up, with no partnership announced. That sent Lehman shares down 45%.

Lehman calmed some of those fears Wednesday when it said it was in advanced talks with a number of potential partners.

“I think there’s relief that they are at least addressing the issues and that there are potential buyers out there,” said Joe Arnold, wealth manager at Dawson Wealth Management.

Lehman (LEH, Fortune 500) shares were choppy on the news, ending lower after rising nearly 10% in the morning and almost 30% in pre-market trading.

But other firms that made bad mortgage bets and are potentially in need of capital saw their shares pummeled. They included Washington Mutual (WM, Fortune 500) and Wachovia (WB, Fortune 500). (Full story)

In addition, Arnold said stock investors were continuing to respond to the government bailout of troubled mortgage giants Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500), announced Sunday.

“You look at the buyout of Fannie and Freddie and that has actually sent mortgage rates lower already, which is positive,” he said.

(However, the lower rates don’t necessarily make getting a loan any easier.)

On the downside, regional banks and insurers continued to struggle in the wake of the government takeover of the two mortgage giants.

Company news. FedEx (FDX, Fortune 500) offered some encouraging news late Tuesday, saying it expects higher fiscal first-quarter earnings of $1.23 per share versus current expectations for a profit of 95 cents, largely because of lower commodity costs. FexEx is often seen as a proxy for the economy. Shares gained 3.7% Wednesday.

Texas Instruments (TXN, Fortune 500) shares inched higher after the chipmaker narrowed its earnings and sales forecast to a range that meets or beats analysts’ forecasts. The announcement was part of its scheduled mid-quarter update late Tuesday.

Research in Motion (RIMM) shares jumped after it introduced a flip phone version of its popular Blackberry Pearl phone.

The Pentagon said it’s delaying its decision on a $35 billion Air Force refueling tanker contest until the next administration takes office. Northrop Grumman was initially awarded the deal, which Boeing contested as unfair. The government agreed, initially reopening bidding, before deciding to end the current contest and have the decision made by the next administration.

Northrop (NOC, Fortune 500) and Boeing (BA, Fortune 500) shares both declined. (Full story)

In other news, ImClone (IMCL) said it has received a $70-per-share buyout offer from a large pharmaceutical company, topping an earlier offer of $60 per share from Bristol-Myers Squibb (BMY, Fortune 500). Bristol already owns a 20% share in the company. ImClone stock gained 6.7%.

Among other movers, a variety of airlines, railroads and truckers bounced on the lower oil prices, lifting the Dow Jones Transportation (DJTA) average up by 2.5%.

Market breadth was positive. On the New York Stock Exchange, winners beat losers on volume of 1.55 billion shares. On the Nasdaq, advancers topped decliners four to three on volume of 2.32 billion shares.

Fuel prices: Oil prices as the government indicated weaker demand for gasoline, even as supplies of crude and gas dipped more than expected last week.

U.S. light crude oil for October delivery fell 68 cents to settle at $102.58 a barrel on the New York Mercantile Exchange, the lowest close since April 1.

Gas prices rose overnight, breaking a nine-day losing streak, according to a national survey of credit-card activity.

Other markets: In global trade, European and Asian markets ended lower.

In the bond market, Treasury prices tumbled, raising the yield on the benchmark 10-year note to 3.63% from 3.57% late Tuesday. Prices and yields move in opposite directions.

The dollar rallied versus the euro and yen.

COMEX gold for December delivery fell $29.50 to $762.50 an ounce.

Among those changes were plans by the firm to spin-off part of its commercial real estate assets, sell a majority stake of its investment management division and slash its annual dividend.

Following a wild market session Tuesday in which Lehman (LEH, Fortune 500) shares plunged 45% to their lowest levels in nearly a decade, the investment bank said it lost $3.9 billion during the fiscal third-quarter, or $5.92 a share.

The results, which were released more than a week in advance to help quell fears about the firm’s underlying health, were the company’s second consecutive loss and exceeded Lehman’s $2.8 billion second-quarter loss announced in June.

Lehman Chairman and CEO Richard Fuld Jr. described the quarter as “one of the toughest periods” in the 158-year old firm’s history.

Just a year ago, Lehman Brothers, along with the rest of the broader banking industry were in the early days of the credit crisis. In last year’s third quarter, Lehman reported a profit of $870 million, or $1.54 a share.

Analysts were bracing for bad numbers from Lehman, as well as its crosstown rivals Goldman Sachs (GS, Fortune 500) and Morgan Stanley (MS, Fortune 500), due to sluggish investment banking activity and weakness in stock markets around the globe. But Wednesday’s results surpassed those expectations as consensus estimates anticipated the firm to report a $1.99 billion loss, or $3.35 a share, according to Thomson Reuters.

Lehman shares, which have plunged nearly 88% so far this year, fell nearly 3% Wednesday morning.

A smaller and ‘de-risked’ Lehman
While sluggish investment banking activity and $7.8 billion worth of writedowns weighed on the company’s results, top Lehman execs, including Fuld, blamed the abysmal quarterly numbers on the attempts to shore up the company’s books.

During the quarter, the company said it drastically slimmed down both its commercial and residential real estate holdings by selling billions of dollars worth of assets as part of the multi-prong restructuring plan announced Wednesday.

Lehman said it reduced its residential real estate holdings by nearly a half. Part of that included the planned sale of about $4 billion worth of U.K. residential real estate. Lehman said it was working with asset manager BlackRock (BLK, Fortune 500) on the sale and expected it to be completed in the coming weeks.

Similarly, the Wall Street firm announced it would spin off the majority of the company’s commercial real estate assets into a new, separate public company dubbed Real Estate Investments Global as part of an effort to “derisk” the balance sheet, Fuld said.

While a deal had not been finalized, the company added that it planned to sell a majority interest in its investment management division, which includes the profitable money manager Neuberger Berman. Lehman said it was in advanced discussions with a number of potential partners and that it expected to announce details of the deal “in due course.”

Speculation about a break-up of Lehman have persisted in recent months, including talk that the company would shed its profitable Neuberger Berman money management unit to raise cash.

Also, in an effort to save $450 million, Lehman said it planned to reduce its annual dividend to 5 cents per share from 68 cents.

“Lehman is being forced to make hard decisions now that the various options on the table have narrowed and balance sheet concerns start to bite,” Cubillas Ding, a senior analyst with with financial research firm Celent, wrote in a research note Wednesday.

Putting the rumor mill to rest
The fate of Lehman Brothers has been the subject of much market discussion in recent months following the near collapse of Bear Stearns, which was subsequently sold to JPMorgan Chase (JPM, Fortune 500) at a fire sale price.

On Tuesday, Lehman shares plummeted following a report by Dow Jones that indicated talks between Lehman and Korea Development Bank had ended. It had been widely speculated in recent weeks that the state-run KDB was interested in buying a stake in Lehman.

The stock fell even further Tuesday after credit ratings agency Standard & Poor’s said it was placing Lehman on its CreditWatch list with negative implications, suggesting that S&P may cut its rating on Lehman’s debt.

Lehman’s problems have proven more acute than some of its peers as a result of bad investments in the U.S. commercial and mortgage market such as the apartment developer Archstone.

In June, following the company’s first loss, Lehman silenced many of those critics by announcing plans to raise $6 billion in capital by selling stock.

At that time, investors were not only questioning the company’s accounting but speculating that Lehman may have to sell part or even all of itself to another financial firm.

But some of that speculation persisted in the months that followed. Most recently, there have been news reports that other large global financial institutions besides KDB were eyeing an investment in the U.S. firm, including Tokyo Mitsubishi Bank as well as a group of investors led by the British bank HSBC (HBC).

Lehman chief Fuld told analysts on a conference call Wednesday that he would bring any attractive proposition to the company’s directors provided it offered a compelling value for shareholders.

Fuld, who has faced increasing pressure to take action amid all the uncertainty about the firm’s future, said such speculation and the intense public scrutiny the company has faced in recent weeks has caused “significant distractions” to not only clients and counterparties but employees as well.

But he was quick to point out that morale at the firm remained strong and that employee turnover was nothing “abnormal.” He added that Lehman’s board continued to be supportive.

“We have a long track record of pulling together when times are tough,” he said. “We are on the right track to put these last two quarters behind us.”

If the Fed does so, it would mark a dramatic change in the central bank’s assessment of the economy. As recently as the Fed’s last meeting in August, Fed members indicated that their next move would be to hike rates at some undetermined point in the future in order to fight inflation.

The Fed typically lowers interest rates during an economic slowdown in order to stimulate more borrowing and looks to raise them when it is more concerned about inflation.

The Fed slashed its federal funds rate, an overnight bank lending rate that helps determine how much interest consumers and businesses pay on various types of loans, seven times from September of last year through April in an attempt to minimize the damage from the mortgage crisis and credit crunch.

But the Fed has left rates unchanged at its past two meetings and started to indicate that it was growing more worried about rising commodity prices, particularly oil.

However, the U.S. economy, which once seemed on the verge of a recovery in the second-half of the year, has recently shown signs of weakening further.

Inflation fears fade
The unemployment rate jumped to 6.1% in August, the highest level in nearly 5 years. Economic growth is also slowing overseas. That could cut demand for U.S. exports, which was a main driver of the economic growth in the second quarter.

Thomson Reuters forecasts that third quarter corporate earnings will be flat, as losses continue to mount in the financial sector. And troubled mortgage giants Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500), which own or back more than $5 trillion in home loans, were seized by the Treasury Department this week.

At the same time, oil prices have fallen sharply from their record highs and the dollar has rebounded against the euro. Thus, some think the threat of inflation is receding.

With this in mind, one economist said that so-called inflation doves, those who argue economic weakness is a greater threat than inflation, have ample reason to call for a rate cut.

“Like Prince said, ‘This is what it sounds like when doves cry,’” said Bob Brusca of FAO Economics, who is predicting that the Fed will lower rates before the end of the year.

“Up to this point, the job losses haven’t been that bad. But the measures that the Fed looks at below the surface have got to make them worried,” said Brusca. “When the economy is moving sideways, it’s one thing to leave rates unchanged. When it’s moving lower, it’s another.”

To be sure, there are still inflation hawks on the Fed, those who believe the central bank should be raising rates to keep prices in check.

Dallas Fed President Richard Fisher voted for rate hikes at the Fed’s last two meetings. And in April, he and Philadelphia Fed President Charles Plosser voted against a rate cut.

But Brusca pointed to a recent speech by San Francisco Fed President Janet Yellen as a sign that the Fed may no longer consider rising prices a serious threat.

Earlier this month, Yellen said there has been “a shift in the inflation picture” and that she is now “very hopeful that inflation will come down quite substantially.”

While Yellen is not currently a member of the central bank’s rate-setting Fed Open Market Committee, she attends the meetings and is seen as an influential voice.

“Yes, she’s a dove, but it’s clear the doves are coming out of their shells,” said Brusca.

To cut or not to cut
Investors have noticed. According to interest rate futures on the Chicago Board of Trade, investors are now pricing in about an 8% chance of a rate cut at the Fed’s October meeting, a two-day session that concludes on October 29.

By way of comparison, shortly after the Fed’s last meeting, the futures pointed to a 54% chance of a rate hike at the October meeting.

Of course, the likelihood of a cut is still small. And one economist said that rate cuts could do more harm than good since it might spook investors and businesses already worried about the fragile state of the economy more than it would help lift spending or borrowing.

“It would send a clear signal that [the Fed] felt there were still more shoes to drop, more trouble ahead,” said David Kelly, chief market strategist for JPMorgan Funds.

He added that the Fed wouldn’t want to lower rates much further just yet because it would limit its ability to respond to some future shock to the financial system with more rate cuts.

But another economist suggested that another cut later this year or early next year is justified because of expectations that the economy will continue to get worse.

“If you need it now, you should use it,” said Keith Hembre, chief economist with First American Funds, about the option of a rate cut sooner rather than later. “I don’t know what you’d want to save it for.”

The Commerce Department reported that imports exceeded exports by $62.2 billion, up from an upwardly revised $58.8 billion in June. Economists had expected a $58 billion gap, according to a consensus estimate compiled by Briefing.com.

The gap was the widest since the $62.3 billion deficit posted in March 2007.

The report was strongly colored by oil prices, thanks to the $147.27-a- barrel record set July 11. Because the report is lagging, it doesn’t reflect the more than 30% drop in oil prices over the past two months.

Excluding petroleum, the trade gap actually shrank to $29.6 billion from $32.5 billion in June, according to Bob Brusca, an economist with FAO Economics.

“If you strip oil out of the report, you see that imports are weak, exports are strong, and the deficit is shrinking,” said Brusca. “Oil is a big misdirection as far as understanding the direction of trade.”

Petroleum imports – which made up more than a quarter of the total – increased 13.7% from the month before, and were up nearly 31% from January. Oil helped raise overall imports to $230.3 billion from $221.6 billion, aided by the nearly 60% boost in oil prices from the year before.

Although there was a small increase in inflation-adjusted, non-petroleum imports, they remained below levels reached earlier this year – a signal to Brusca that the economy is in decline.

“Declining imports are a harbinger of bad GDP results and bad domestic demand,” Brusca said.

The increases in imports, aside from petroleum, came from capital goods, and the foods, feeds and beverages category.

Exports rose to $168.1 billion from $162.8 billion in June. Export categories with the strongest growth included industrial supplies, capital goods, autos and consumer goods. There were slight declines in the feeds, food and beverages category.

Japanese shares ended a four-day losing streak Monday, rising sharply following strong gains on Wall Street Friday and easing crude oil prices. The benchmark Nikkei 225 index rose 212.62 points, or 1.68 percent, to 12,878.66. The broader Topix index advanced 1.88 percent to 1,239.25.

Bargain-hunting investors boosted shares in nearly all sectors, with banking and rubber issues among the biggest winners of the day.

Financial names, battered recently on growing credit market concerns, sprung back to life Monday following speculation of a possible takeover of Lehman Brothers.

Sumitomo Mitsui Financial Group, Inc. surged 4.24 percent to 664,000 yen, and Mizuho Financial Group, Inc. added 4.76 percent to 462,000 yen. Nomura Holdings, Inc. increased 2.98 percent to 1,450 yen.

Although bank stocks’ recent losses “look excessive,” their outlook in the coming months may be modest, said Deutsche Securities analyst Shin Tamura in a research memo.

“Investors are likely to shy away from bank stocks in fear of further real estate and construction firm collapses from mid-September, so bank shares are likely to remain subdued in the near term,” Tamura said.

On Friday, the Dow Jones industrial average rose 197.85, or 1.73 percent, to 11,628.06.

Japanese exporters have benefited from a more robust dollar versus the yen, as well as softening oil prices. A stronger dollar inflates the value of overseas profits when repatriated to Japan. The dollar stayed relatively steady at 109.92 yen Monday afternoon compared with 110.08 yen late Friday. The euro fell to US$1.4737 from US$1.4789.

Honda Motor Co. jumped 4.36 percent to 3,590 yen, Nissan Motor Co. added 3.13 percent to 856 yen, and Sony Corp. was up 4.37 percent at 4,300 yen.

Oil prices were steady most of Monday after tumbling US$6.59 on Friday. They edged back above US$115 a barrel in late Asian trading amid worries about tensions between the U.S. and Russian over the conflict in Georgia.

(This version CORRECTS last graf to say oil price rose above $115 sted $155.)

Question: Given the way the U.S. stock market has been behaving, what are your thoughts of buying foreign stocks versus domestic shares? —Henry, San Antonio, Texas

Answer: If you’re thinking of moving into foreign stocks because they’ll offer shelter at a time when U.S. shares are being hammered, you may end up being disappointed. Academic research has shown that when the U.S. stock market gets slammed, foreign bourses also find themselves reeling.

That’s certainly been true lately. Foreign shares as measured by the broad MSCI EAFE index, are down about 19% from the beginning of the year compared with a 12% decline for the Standard & Poor’s 500 index. And some foreign markets have taken an old-fashioned whupping: witness the drop of just over 50% in the value of Chinese shares in the Shanghai Composite Index.

Similarly, if you’re being drawn to foreign shares because they racked up big gains before their recent setback, you may need to re-calibrate your expectations a bit on that front too. Some of those attractive returns were the result of a slide in the value of the U.S. dollar. American investors who own foreign stocks benefit when the greenback drops and foreign currencies rise since profits in shares denominated in foreign currencies buy more U.S. dollars. With European economies weakening and commodity markets struggling, however, the dollar has been rallying lately. Which means that currency tailwind effect could abate, or even turn into a headwind.

Why invest overseas?

So if foreign stocks may not provide the security of higher ground during a deluge and the dollar’s recent booster effect may be waning, why do I still think it’s a good idea for U.S. investors to have a portion of their portfolios invested abroad?

The answer is that, propelled by growth in their economies, foreign shares can generate strong long-term returns aside from any currency effect. And despite foreign stocks’ tendency also to retreat when U.S. shares drop sharply, foreign equities still offer valuable diversification benefits during those times when the U.S. stock market isn’t operating in bear mode, which, after all, is most of the time.

Analysts measure the extent to which domestic and foreign stocks zig and zag relative to one another by looking at a statistic known as the correlation coefficient. The propensity of domestic and foreign shares to move together can vary for a number of reasons, including trade policies and a general move toward globalization. But over long periods of time correlations are generally loose enough so that adding foreign stocks to an all-USA portfolio can enhance the tradeoff between risk and return (that is, boost your portfolio’s returns without increasing risk or deliver the same return while lowering risk).

Build a portfolio

There are several ways to reap this benefit. One is to create a portfolio diversified by industry sectors (consumer staples, financials, technology, etc.), and then buy stocks of the best companies in those industries whichever country they happen to be located in. While this approach can be effective, it requires quite a bit of time, effort and skill to identify top companies around the globe and then monitor such a portfolio.

Another strategy is to add international exposure country by country, depending on which nations you feel offer the best opportunities for diversification and return. There are certainly enough single-country and regional mutual funds and ETFs around to allow you to take this route if you wish. But pulling it off successfully assumes you know which countries to buy, how much of your portfolio you should devote to each and how to keep tabs on and adjust your far-flung holdings.

And then there’s a much simpler approach that I believe is appropriate for most people – just devote a portion of your stock portfolio to a broadly diversified international stock fund. You can find suitable candidates by checking out the actively managed, index and ETF sections of our Money 70 list of recommended funds.

Reasonable people can and do differ as to how much exposure to international markets individual investors ought to maintain. But, I think 20% to 30% is a sensible range.

Stay the course

Whatever percentage you decide is right for you, the important thing is that you largely stick to it. In other words, avoid the temptation to plow more money into foreign stocks when they’re outpacing U.S. shares and to scale back your international holdings when domestic stocks are surging.

There are no guarantees, of course, but over time the approach I’ve outlined should enhance your portfolio’s overall returns and reduce risk. Not eliminate risk, mind you. You’ll still have to deal with periods when both U.S. and foreign shares slump. But that’s what bonds are for.

Which is why I was particularly curious to take a joy ride in July on the brand-new Hawker 4000, the first plane to offer big-jet safety and technology features at a midsized-jet price.

Okay, so it’s still $21 million. But consider: It’s $2 million cheaper than a Gulfstream G200 and $7 million less than a Falcon DX, and it has a range of 3,280 nautical miles – that’s coast to coast or New York to London nonstop.

The 4000 boasts cutting-edge avionics, auto throttle, and multiple duplicate systems (for safety) unavailable in comparable-size jets – only on the big boys.

A body like no other
Hawker Beechcraft is also the first manufacturer to certify a composite-body jet with the FAA. “It was six steps back to do composite,” says chairman and CEO Jim Schuster of the 20-year, $1 billion development process. But the resulting body is 70% stronger than aluminum, doesn’t corrode, is easier to repair, and has no life limit.

Amazingly, the fuselage is composed of three enormous pieces – vs. more than 10,000 on a traditional competitor. It’s also three times thinner, meaning there’s noticeably more room inside the standup, flat-floor ten passenger Hawker.

Tucked into its fine leather – HBC offers limitless leathers, woods, and exotic materials – I felt the obvious power during takeoff. The next thing I noticed was the relative peace: The 4000 has the quietest cabin in its class.

There’s already a two and a half year wait list, in part thanks to orders from fractional-jet companies like NetJets and BJETS, so even those who won’t be buying a 4000 may still be able to hop aboard one soon.

Private jet etiquette
So you have friends in high places, and they’ve offered to bring you along. Follow these rules if you want to be invited back.

Ask in advance how much luggage you may bring.
Don’t take your seat until after the owners find theirs.
Never tip the staff. That’s entirely up to the owner.
Nix bringing your own meal. But offering to feed everyone – preferably by air caterer – is a nice gesture.
Skip the red wine. You don’t want your hosts to remember you every time they see the stain on the carpet.
Arrange for transportation when you land. Asking for a lift is an inconvenience.
Show your thanks. One owner gives a gift equal to a first-class commercial ticket when she flies with other owners. You may not need to go so far, but don’t skimp either. — Diane Tegmeyer

The Federal Reserve reported Friday that industrial production edged up 0.2% last month. That was half the pace of the 0.4% gain in June, but it did surpass analysts’ expectations for flat production in July.

The increase reflected a 0.4% gain in output at manufacturing plants. Motor vehicles and parts showed the biggest increase in manufacturing, advancing for a third straight month.

These gains were not seen as signaling a sustained rebound, however, given the problems facing the auto industry this year. Instead, the rebound in auto activity was viewed as a temporary improvement because a strike ended at parts supplier American Axle.

Even with the recent gains, production at auto plants remained 10.4% below where it was a year ago.

The increase in manufacturing helped to offset a big 1.9% drop in output at utilities, a decline which followed a 2.3% surge the previous month. Both changes were seen as weather-related.

The big June jump came from hotter-than-normal weather requiring increased electricity production. The decline in July reflected a return to more normal weather which meant a drop in utility output compared to the previous month.

Output in the mining sector rose a strong 0.9%, matching the increase of the previous month. The gains in this sector have been paced by strong activity in oil and natural gas production.

With all the changes, the nation’s factories, mines and utilities operated at 79.9% of capacity in July, up slightly from June when the operating rate was 79.8% of capacity. That level remained below the average operating rate of 81% seen over the last 25 years.

Industry is having to struggle this year with a steep slump in housing, which has hurt producers of building supplies and furniture, and the continuing problems in the auto industry, which saw sales drop to the lowest level in 16 years in July.

A boom in U.S. export sales because of the weak dollar has helped offset this slump There is concern that the export boom may not last given spreading weakness in major overseas markets in Europe and Japan.

The Charlotte, N.C.-based bank will also pay $50 million in fines to be distributed among states.

Wachovia (WB, Fortune 500) is the fifth bank to agree to repurchase the troubled securities over the past two weeks, following Citigroup Inc., UBS AG, JPMorgan Chase & Co. and Morgan Stanley.

Auction-rate securities are investments that resembled corporate debt, but their interest rates were reset at regular auctions.

The market for the securities collapsed in February amid deterioration in the broader credit markets.