February 26, 2009 / 5:33 AM / 10 years ago

PRESS DIGEST - Wall Street Journal - Feb 26

Feb 26 (Reuters) - The following were the top stories in The Wall Street Journal on Thursday. Reuters has not verified these stories and does not vouch for their accuracy.

* The Obama administration, in unveiling details of its financial-rescue plan, laid out a dark economic scenario it expects banks to be able to withstand, the starting point for what could become a significant new infusion of government cash into the banking system.

* Citigroup Inc (C.N) is closing in on an agreement to boost the federal government’s stake in the company to as much as 40 percent.

* Home resales fell 5.3 percent in January amid another steep decline in prices.

* Top executives of Chrysler LLC met with President Barack Obama’s auto task force in Washington, where they discussed the company’s troubled finances, its proposed alliance with Fiat SpA FIA.MI and fuel-efficient vehicle development, said a person familiar with the session.

* Cisco Systems Inc (CSCO.O) laid off several hundred employees this week, joining other tech giants that have cut staff as they deal with the recession.

* Bank of America Corp (BAC.N) is looking to sell a private bank it inherited from Merrill Lynch & Co as the bank tries to preserve capital and possibly shed noncore assets, according to people familiar with the situation.

* Apple Inc’s (AAPL.O) board defended the company’s limited disclosures about the health of Chief Executive Steve Jobs, and said Jobs remains deeply involved in strategic matters. But directors declined to give shareholders more details about the CEO’s health or discuss the company’s succession plans at the annual meeting, leaving some investors frustrated.

* A U.S. appeals court upheld the insider-trading conviction of former Qwest Communications International Inc Q.N Chief Executive Joseph Nacchio, reinstating his prison sentence and revoking his release on bond.

* Roche Holding AG ROG.VX raised another $14 billion in bonds for its hostile bid for Genentech Inc DNA.N, helping push Genentech’s stock price to around Roche’s offer of $86.50 a share, as investors bet Roche would increase its bid.

* UBS AG’s UBSN.VX Japan unit said it placed an erroneous three trillion yen ($31 billion) order on a Capcom Co. convertible bond that halted trading of the issue on the Tokyo Stock Exchange.

* President Barack Obama will propose $634 billion in new taxes on upper-income Americans and cuts in government spending over the next decade to pay for his promised health-care expansion.

* As the Obama administration tries to pull together a $634 billion down payment on achieving universal health coverage, it has made clear that it wants the health-insurance industry to foot a large part of the bill.

* In the latest round of financial-fraud allegations to erupt, two money managers have been accused of misappropriating at least $553 million, and using it to fund a lifestyle of lavish homes, horses and even an $80,000 collectible teddy bear.

* European Union regulators said they don’t plan to propose a pan-European aid package for the auto sector, despite calls for coordinated action.

* The U.S. Justice Department alleges Forest Laboratories Inc FRX.N improperly marketed its antidepressant drugs Celexa and Lexapro for use in children and paid kickbacks to encourage doctors to prescribe the drugs for such use.

* When Google Inc’s (GOOG.O) online-email service briefly shut off this week, it brought to light concerns about whether businesses can rely on Internet-based software.

* Nortel Networks Corp NT.TO plans to slash 3,200 more jobs world-wide over the next several months, as the telecom-equipment vendor tries to restructure under bankruptcy-court protection.

* Fertilizer producer Agrium Inc AGU.TO offered to buy rival CF Industries Holdings Inc (CF.N) in a $3.6 billion cash-and-stock bid that signals renewed interest in agribusiness deals, spurred on as stock values have plunged along with commodity prices.

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