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Financial News USA
Feb 8


Nissan recalls 540,000 trucks and minivans and Treasury cashing in on bank turnaround
News - Financial News

Nissan is recalling 540,000 vehicles worldwide to fix faulty brake pedal pins and inaccurate fuel gauges.

The Japanese automaker's North American division said no accidents or injuries have been reported, but the company is initiating the recalls based on three reports of brake pedal pins partially disengaging, hindering braking ability.

A separate, unrelated fuel-gauge issue can lead to inaccurate fuel readings in certain trucks and minivans. The gauge may show gas left when the tank is actually empty.

The brake pedal pin recall affects 2008, 2009 and 2010 Nissan Titan, Armada, Quest and Infiniti QX56 models -- about 179,000 of which are in the United States. Owners of these vehicles should bring their their vehicles to a Nissan or Infiniti dealership for a visual inspection, the company said. Repairs will be made as necessary.

The fuel gauge recall affects 419,000 U.S. [Read the full article]

Bank of America is about to leave the Troubled Asset Relief Program with a bang.

On Wednesday, the government will sell the stock-purchase warrants it received from BofA (BAC, Fortune 500) in exchange for multibillion-dollar emergency loans during the financial crisis. The auction could fetch as much as $2 billion, according to one estimate, potentially making the sale the Treasury Department's most lucrative warrant transaction.

The auction comes at a time when the bailout bill has shrunk, thanks to last year's market rally, and just a few big banks retain TARP ties.

Recent estimates from the Congressional Budget Office suggest Treasury will roughly break even on its loans to banks, though support for housing and the auto industry are still likely to result in substantial losses. [Read the full article]

The dollar slipped against other major currencies Wednesday after Greece announced measures to reduce its deficit by four percentage points this year.

What prices are doing: The dollar fell 0.4% against the euro to $1.3668, and dropped 0.5% against the pound to $1.5043. The greenback edged 0.1% lower against the yen to ¥88.76.

The dollar lost steam and reversed gains Tuesday, ending lower as the euro rose on hopes that the debt-choked Greece would make decisions take measures its deficit.

What's moving the market: Greece announced plans to make steep cuts in civil servant salaries and raise taxes to save the debt-challenged country more than $5.4 billion this year, according to a report in the Wall Street Journal's online edition.

Greek officials expect the cuts to lower Greece's budget deficit to 8.7% of the country's gross domestic product from its current level of 12.7%, according to the report. [Read the full article]

Oil prices edged higher Wednesday on a weaker dollar, as investors awaited a weekly inventory report and after Greece outlined a plan to cut its deficit.

What prices are doing: Light, sweet crude oil for April delivery rose 42 cents, or 0.5%, to $80.10 a barrel.

Oil gained more than 1% Tuesday as the dollar fell amid hopes that the European Union would help bail out Greece.

What's driving prices: Investor optimism was boosted Wednesday after debt-ridden Greece outlined a cost-cutting plan that will save the country $5.44 billion this year.

Crude prices were also lifted by a weaker dollar, which fell against major currencies as investors turned to riskier assets following the positive news about Greece. Oil and other commodities that are priced in dollars often rise when the U.S. currency weakens.

Meanwhile, investors were looking ahead to the Energy Information Administration's weekly inventory report due Wednesday. [Read the full article]

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