IN BRIEF

NEW YORK

Housing market index climbs during August

The National Association of Home Builders said Monday its housing market index rose in August to the highest point in more than a year, as homebuyers hurried to take advantage of a federal tax credit before it expires.

The Washington-based trade association said Monday the index rose one point to 18, a level unseen since June 2008.

The federal tax credit that covers 10 percent of a home price up to $8,000 for first-time buyers is set to expire at the end of November.

NEW YORK

Reader's Digest will seek bankruptcy haven

The publisher of Reader's Digest, the country's most popular general interest magazine, said Monday it will file for Chapter 11 protection with a plan to swap a portion of its debt for ownership of the company.

Reader's Digest Association Inc., which also markets books and publishes dozens of other magazines and Web sites, said it has reached an agreement in principle with a majority of lenders to erase a portion of $1.6 billion in senior secured notes. The lenders will get ownership in return.

NEW YORK

New chieftain for AIG to get $7 million salary

American International Group Inc.'s new CEO will be paid a yearly salary worth $7 million and could earn millions more in incentives, the bailed-out insurance giant said Monday.

Robert Benmosche will receive $3 million in cash and $4 million in stock under his annual compensation package, AIG said in a filing.