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GEITHNER GETS BLAME FOR AIG BONUSES

Treasury Secretary Timothy Geithner is "ultimately responsible" for regulators' failure to rein in massive bonus payments at American International Group because he led the agencies that provided AIG's lifelines, according to a bailout watchdog. Geithner was president of the Federal Reserve Bank of New York before taking over at Treasury in January. He has said he did not learn until March about the $1.75 billion in bonuses and other compensation promised to AIG employees. But Geithner's subordinates at the New York Fed learned of the payments in November, according to Neil Barofsky, the special inspector general for the $700 billion financial bailout. Even if no one told Geithner about the payments, "this is a failure of communication and a failure of management," Barofsky told the House Committee on Oversight and Government Reform on Wednesday.

WALL STREET JOURNAL SURPASSES USA TODAY

The Wall Street Journal has surpassed USA Today as the top-selling daily newspaper in the United States. The Audit Bureau of Circulations won't be releasing its latest figures until Oct. 26, but the Journal said Wednesday that it gained about 12,000 subscribers in the April-September period, compared with a year earlier. That puts its average Monday-Friday circulation at 2.02 mil- lion. USA Today said last week that it had its worst circulation decline ever, dropping 17 percent to 1.88 million. Audit rules allow newspapers to count some online-only subscriptions. The Journal charges for access to much of its Web site. USA Today does not.

LEAD TOY SETTLEMENT

Mattel Inc. and its Fisher-Price subsidiary have agreed to settle a consumer lawsuit for what could total more than $50 million over the 2007 recall of millions of toys made in China that were found to contain high levels of lead. The proposed class-action settlement, filed in Los Angeles on Tuesday, will resolve 22 suits filed against Mattel and Fisher-Price and major retailers on behalf of millions of families who purchased or received the defective toys as gifts before they were later recalled or withdrawn from market. For details on the Mattel and Fisher-Price settlement, visit www.MattelSettlement.com or www.CSGRR.com/Mattel.