Reuters Business Summary

Insurer AIG posts 2nd-quarter loss on write-downs

NEW YORK (Reuters) - American International Group Inc (AIG.N: 行情), the world's largest insurer, posted its third consecutive quarterly net loss on Wednesday, hurt again by the write-down of derivatives linked to bad mortgage investments. The news sent its shares, which have more than halved over the past year, down more than 7 percent to $27 in after-market trading.

Freddie posts 4th straight quarterly loss and slashes dividend

NEW YORK (Reuters) - Freddie Mac (FRE.N: 行情), one of the major players in the U.S. mortgage market, on Wednesday posted its fourth straight quarterly loss as it braced for a prolonged housing market slump by setting aside twice as much money for bad loans and cutting its dividend by at least 80 percent. The worse-than-expected results came just three weeks after the Treasury orchestrated a Congressional rescue plan to prop up the U.S. No. 2 provider of residential mortgage funding and its rival Fannie Mae (FNM.N: 行情).

Market rises on Cisco outlook and drop in oil

NEW YORK (Reuters) - Stocks rose on Wednesday, building on the previous day's big gains, as a further drop in oil prices and a reassuring outlook from Cisco Systems (CSCO.O: 行情) overshadowed persistent credit concerns. Cisco, the maker of equipment that directs Web traffic, set the tone for tech shares after it posted a stronger-than-expected quarterly profit and said it expects the weak economic environment to be relatively short lived. Its shares jumped nearly 6 percent.

IRS offers banks and others tax shelter settlement

WASHINGTON (Reuters) - More than 45 major U.S. companies, including big banks, are being offered settlements to get rid of abusive tax shelters, the Internal Revenue Service said on Wednesday. "Promoters and participants in aggressive tax shelters should know that the IRS will remain vigilant," IRS commissioner Doug Shulman told reporters on a conference call.

Icahn joins Yahoo board, turning up heat for deal

SAN FRANCISCO (Reuters) - Yahoo Inc's (YHOO.O: 行情) board confirmed billionaire investor Carl Icahn as a director, while board member Robert Kotick tendered his resignation as part of a previously announced deal, the company said on Wednesday. In a filing with U.S. securities regulators, the Internet company said Kotick had resigned following the company's August 1 annual shareholder meeting and confirmed that Icahn had been named under a settlement deal that averted a proxy battle with a rival slate of board candidates led by Icahn.

Costly oil spurs long-term change in consumers

SAO PAULO (Reuters) - High oil prices have caused "dramatic" and longer-term changes in consumer behavior, U.S. Acting Deputy Energy Secretary Jeffrey Kupfer said on Wednesday. "Oil prices continue to come down but it's unclear what will happen with the prices," said Kupfer while meeting with representatives of Brazil's ethanol and automobile industry at the American Chamber of Commerce in Sao Paulo.

Blackstone posts loss, financing still difficult