BUSINESS HIGHLIGHTS

Madoff Monitored By Feds; Obama Reacts To Scandal

NEW YORK (AP) - Bernard Madoff spent his first day under electronic monitoring Thursday as President-elect Barack Obama said the scandal brought on by the disgraced investor "has reminded us yet again of how badly reform is needed."

The effects of the $50 billion fraud has spread around the globe, and the Securities and Exchange Commission has come under fire for failing to detect Madoff's alleged deception despite repeated warnings, especially from a Massachusetts investor who has been sounding the alarm for the past decade.

Stocks Finish Lower Amid Lingering Economic Fears

NEW YORK (AP) - Wall Street extended its losses Thursday, as a negative ratings outlook on financial and industrial powerhouse General Electric Co. shook an already fragile investor psyche and sent stocks tumbling.

After moving within a narrow trading range for much of the session, the Dow Jones industrial average dropped about 220 points to 8,604.99. The broader Standard & Poor's 500 index lost more than 2 percent.

Mortgage Rates Fall; Unemployment Data Still Weak

WASHINGTON (AP) - Mortgage rates are falling as this week's dramatic action by the Federal Reserve provides a boost to the dismal housing market, but the nation's unemployment rolls are stuck at historically high levels amid a deepening recession.

Mortgage giant Freddie Mac on Thursday reported that rates had fallen to the lowest level on records dating back to 1971. Average rates on 30-year fixed-rate mortgages dropped to 5.19 percent, down from the year's previous low of 5.47 percent, set last week.

Obama Appointees Signal Tighter Market Oversight

WASHINGTON (AP) - President-elect Barack Obama is turning to seasoned pros for the Herculean task of overhauling the way the U.S. regulates its financial system, an effort he says is one of his top priorities.

His goal: to prevent crises like the one that has shattered Americans' nest eggs, devastated Wall Street and left the country in a painful recession.

Obama signaled an activist regulatory approach Thursday as he revealed key players on his incoming economics team.

Crude Plunges As Economy Struggles, Spending Falls

Oil continued its downward march Thursday as mass layoffs pushed the U.S. economy deeper into recession, signaling a drastic pullback on energy spending.

Light, sweet crude for February delivery, fell $2.94 to settle at $41.67 barrel on the New York Mercantile Exchange. The January contract, which closes on Friday, fell 9 percent, or $3.84, to settle at $36.22 after dropping as low as $35.98, levels last seen in June 2004.

Regulators Adopt New Credit Card Rules

WASHINGTON (AP) - Federal regulators on Thursday adopted sweeping new rules for the credit card industry that will shield consumers from increases in interest rates on existing account balances among other changes.

The rules, which take effect in July 2010, will allow credit card companies to raise interest rates only on new credit cards and future purchases or advances, rather than on current balances.