The Buzz On Business

JPMORGAN SETTLES RIGGING CASE FOR $211M

JPMorgan Chase & Co. has agreed to pay $211 million after admitting one of its divisions rigged dozens of bidding competitions to win business from state and local governments. J.P. Morgan Securities LLC made at least 93 secret deals with companies that handled the bidding processes in 31 states, the Justice Department and Securities and Exchange Commission said Thursday. Those deals allowed the bank to peek at competitors' offers. Banks help municipalities invest the money they raise from bond offerings so they can earn interest before paying for projects. They compete by submitting to state and local governments the best yield they can offer. The alleged bid-rigging deprived governments of a true competitive process, Assistant Attorney General Christine Varney said in a statement. JPMorgan's settlement covers complaints brought by the SEC, the Internal Revenue Service, bank regulators and 25 state attorneys general. Nearly a quarter of the money will go toward settling civil fraud charges brought by the SEC.

MORTGAGE RATES RISE

Fixed mortgage rates rose this week by the most in four months. The average rate on the 30-year loan increased to 4.60 percent, up from 4.51 percent a week ago, Freddie Mac said Thursday. It hit its lowest level of the year three weeks ago, at 4.49 percent. The average rate on the 15-year fixed mortgage rose to 3.75 percent. It reached its low point of the year two weeks ago, at 3.67 percent. Rates typically track the yield on the 10-year Treasury note, which has been rising. And mortgage rates could rise further now that the Federal Reserve's $600 billion bond-buying program has ended.

FORECLOSURE RULES FOR JOBLESS EASE

The Obama administration is making it easier for out-of-work homeowners to stay in their homes, as it tries to revamp its troubled foreclosure-prevention program. Starting Aug. 1, the Federal Housing Administration will extend the period for unemployed homeowners to miss mortgage payments to a full year from three or four months. The extended grace period only applies to FHA-backed loans, which represent about 14 percent of all active mortgages and roughly 25 percent of new mortgages, and homeowners in the government's Home Affordable Modification Program. But the change will likely only help "tens of thousands" of homeowners, Housing and Urban Development Secretary Shaun Donovan said Thursday.

PFIZER MAY SELL ANIMAL HEALTH, NUTRITION UNITS

Pfizer Inc. said Thursday it may sell its animal health and nutrition business in the next two years so it can focus on expanding its low-cost pharmaceuticals unit. Pfizer will also consider transactions including spinoffs. The businesses brought Pfizer $5.5 billion in revenue in 2010, about 8 percent of its total.

BOEING PREDICTS GROWTH IN INDIA

Boeing has forecast a $150 billion market for passenger airplanes in India over the next 20 years driven by a booming economy. Indian airlines will need to buy about 1,320 airplanes to meet the demand of an expanding aviation sector, Boeing India President Dinesh Keskar said in a statement Wednesday. India's burgeoning middle class has switched from traveling by train to flying as an increasing number of private domestic airlines have opened up over the past decade. Keskar said Indian carriers were becoming profitable and with the economy expected to maintain its upward trend, air travel and air cargo markets would grow.