IN BRIEF

WASHINGTON

Regulators shut down banks in four states

Regulators on Friday shut down banks in Florida, New Jersey, Ohio and Oklahoma, boosting to 68 the number of federally insured banks to fail this year amid the pressures of the weak economy and mounting loan defaults.

The Federal Deposit Insurance Corp. was appointed receiver of the four banks.

The agency shut down Integrity Bank of Jupiter, Fla., with $119 million in assets and $102 million in deposits, and First BankAmericano, based in Elizabeth, N.J., with $166 million in assets and $157 million in deposits.

Also closed were Peoples Community Bank, West Chester, Ohio, with $705.8 million in assets and $598.2 million in deposits, and First State Bank of Altus, in Altus, Okla., with $103.4 million in assets and $98.2 million in deposits..

WASHINGTON

Stock market enjoys best July in 20 years

New hope for the economy just gave the stock market its best July in 20 years.

Investors placed big bets over the last month that the profit machine at U.S. companies will continue to rev higher, and that the longest recession since World War II is finally easing its grip. If that turns out to be wrong, the huge gains of July means there will be an even bigger price to pay if companies don't deliver.

The Dow surged 725 points, or 8.6 percent, for the month, with most of the gains arriving in bursts in the final 15 days. The extraordinary run shaped July into the best month for the blue chips since October 2002 and the best July since 1989.

WASHINGTON

House votes to rein in pay for bankers, traders

Bowing to populist anger, the House voted Friday to prohibit pay and bonus packages that encourage bankers and traders to take risks so big they could bring down the entire economy.

Passage of the bill on a 237-185 vote followed the disclosure a day earlier that nine of the nation's biggest banks, which are receiving billions of dollars in federal bailout aid, paid individual bonuses of $1 million or more to nearly 5,000 employees.

Aware of voter outrage about the bonuses, Republicans were reluctant in Friday's debate to push back, even though they voted against the bill.

DENVER

Court calls for shorter sentence for ex-CEO

An appeals court has ordered a new, shorter sentence for ex-Qwest CEO Joe Nacchio, saying his 6-year term for insider trading was too long.

The 10th U.S. Circuit Court of Appeals ruled Friday that the trial judge overstated the amount of Nacchio's alleged financial gain.

Nacchio was convicted in 2007 of 19 counts of insider trading and acquitted on 23 counts. Prosecutors alleged he sold $52 million in Qwest Communications International stock based on nonpublic information that the Denver-based telecommunications company was at risk.

A three-judge panel at the 10th Circuit Court of Appeals in Denver on Friday agreed with Nacchio's lawyers that the $52 million figure was too high. Instead, the figure used should have been Nacchio's net profit resulting from illegal insider trading.

WASHINGTON

Employment-cost gain lowest in U.S. records

Employment compensation for U.S. workers has grown over the past 12 months by the lowest amount on record, reflecting the severe recession that has gripped the country.

The Labor Department said Friday that employment costs rose by 1.8 percent for the 12 months ending in June, the smallest annual gain on records that go back to 1982.

The department said that for the April-June quarter, its Employment Cost Index rose by just 0.4 percent, just slightly above the 0.3 percent rise in the first quarter, which had been the smallest quarterly gain on record.

LITTLE ROCK, Ark.

Union-backed groups merge to fight Wal-Mart

Two union-backed groups announced Friday they are merging so they can consolidate their efforts to pressure Wal-Mart Stores Inc. to provide higher pay and better benefits.

Wal-Mart Watch, backed by the Service Employees International Union, will move under the name WakeUpWalMart.com, a group backed by the United Food and Commercial Workers Union. In separate efforts, the groups have spent years criticizing Wal-Mart, issuing news releases, running ads and enlisting Wal-Mart workers.

UFCW spokeswoman Meghan Scott says the groups share the same goals of pushing Bentonville-based Wal-Mart to pay higher wages and improve health coverage and other benefits.

Wal-Mart shares fell 10 cents, or 0.2 percent, Friday to close at $49.86 on the New York Stock Exchange.