Business News for Wednesday, September 2, 2009

Major drug maker, Pfizer faces an enormous $2.38 billion fine as punishment for illegal promotion of their drugs. The company directed various luxury incentives toward doctors. Allegedly, Pfizer offered doctors free massage, resort and golf offers, which violates federal drug regulations. For the next five years, Pfizer will remain under the watchful eye of the Health and Human Service Department.

SEC denies accusations that they mishandled the Madoff investigation

The Securities and Exchange Commission has been accused of mishandling investigations into Bernard Madoff's business practices. The Commission has denied the allegations. Also, the SEC stated that allegations that SEC officials swayed the investigation are unfounded. Bernard Madoff's Ponzi scheme lasted for more than 10 years. The SEC inspector general, David Kotz admits that the commission missed a number of opportunities to handle the Madoff scheme.

Southwest Airlines' new fees

Southwest Airlines is going to charge $10 each way to save a place in the boarding line behind first boarders or to secure better seating on the plane. Additionally, there will be new charges for transporting animals and children who are flying alone. What's next? Some wonder if Southwest's free bag checking will come to an end.

Chevron refuses to pay $27B for Ecuadorian environmental damages

In a Tuesday statement, Chevron refused to pay $27 billion to Ecuador for its environmental damages. The company faced a lawsuit for the charges of damaging the environment and was found responsible. Chevron refuses to pay and accuses the judge who heard the case of being corrupt.

GM August sales soar in China

General Motors saw significant gains in the Asian market. Sales in China increased by more than 110 percent-a significant jump from last year at this time.

Over 1 million in planned layoffs this year

Planned layoffs for the month of August decreased by 21 percent. Still, the number of layoffs from January to August of this year exceeded 1 million. Recovery of those lost jobs in 2010 is not expected to be immediate. Reduction in non-governmental jobs is dropping which signals that the economy is on the mend.

World stocks dip; Asian markets lose big Wednesday

Heavy losses were seen in Asian markets today, as world stock markets sank. Investors around the globe are wary despite positive news about the global economy's direction.

Analysts anticipate "weak" retail reports

Reports from retailers will key in analysts about what will come this holiday season. Thursday, analysts will learn more as retailers turn in their reports. Sales and promotions occurred earlier this year than last year; and Labor Day comes a week later. These factors may make comparisons between this year and last year retail reports difficult.

Mortgage Bankers Assoc. proposes getting rid of Fannie and Freddie

Wednesday, Mortgage Bankers Association proposed that Fannie Mae and Freddie Mac be done away with and replaced by private mortgaging companies. Early next year, President Barack Obama is expected to address his plans for Fannie Mae and Freddie Mac, which required a $96 billion bailout in fall of 2008.

References

Pfizer to pay record $2.38B penalty over promotions

SEC watchdog: agency mishandled Madoff probes

Southwest adds charge to board sooner

Chevron: No payment for enviro damages in Ecuador

GM's August China vehicle sales more than double

Planned U.S. layoffs hit 1 million for 2009

World stocks slide despite upbeat data

Weak retail report cards likely, analysts say

Industry group proposes replacing Fannie, Freddie