IN BRIEF

LS Power affiliate will consider partnership

Great Basin Transmission, an affiliate of LS Power, said Thursday that it has entered a memorandum of understanding to evaluate and consider a partnership with the federal government's Western Area Power Administration to develop the Southwest Intertie Project.

The Southwest Intertie is a transmission line that would span 500 miles, from southern Idaho to Las Vegas. The line would have a capacity of 500 kilovolts, and could carry renewable energy.

The Western Area Power Administration must complete its due diligence and approve definitive agreements before it proceeds with the project.

If the two parties reach an agreement, construction would start "in the near term," Great Basin said in a statement.

Source: Help coming for Boulder Dam Hotel

Boulder City attorney Ralph Denton on Thursday said a client, whom he declined to identify, is prepared to make a $260,000 donation to keep the Boulder Dam Hotel open through the slow summer season.

The historic hotel, built in 1933, closed at midnight Saturday after the city's Redevelopment Agency board deadlocked 2-2 in a vote over a $150,000 loan or grant that could keep the property open.

"This hotel is the last historical building in Clark County," because Las Vegas has demolished so many of its historic properties, Denton said. "The people of this community love it."

The donor, who loves the hotel and Boulder City, wants to preserve it for the community, he said.

Denton said he met with directors of the Boulder City Museum and Historic Association, the nonprofit group that owns the hotel but needs more information.

Denton expects to hand over the check to the nonprofit group "soon."

NEW YORK

CIT Group shares sink after bid for aid denied

Shares of CIT Group Inc., which was denied a federal bailout, plunged 75 percent Thursday as bondholders scrambled to find an eleventh-hour solution that would keep the commercial lender out of bankruptcy protection.

But there is no guarantee they will be able to save the ailing company, which teeters on the brink after failing to get emergency government funding. CIT said late Wednesday that talks with regulators about a possible rescue had broken off after days of round-the-clock negotiations.

In a last-ditch effort to avoid bankruptcy, CIT is trying to line up $2 billion to $4 billion in rescue financing from its debtholders within the next 24 hours, two sources familiar with the talks told The Associated Press. They requested anonymity because they weren't authorized to speak publicly.

WASHINGTON

More Americans seek jobless benefits in week

The number of newly laid-off Americans signing up for unemployment benefits last week, and those using this safety net over a longer period, both plunged. But the government figures released Thursday were clouded by difficulties adjusting for temporary shutdowns at auto plants.

The Labor Department said new applications for unemployment insurance dropped by a seasonally adjusted 47,000 to 522,000, the lowest level since early January. Economists polled by Thomson Reuters expected claims to rise to around 575,000.

Even if the recession ends this year as the Federal Reserve and many private economists expect, companies are expected to keep trimming payrolls.

LOS ANGELES

Housing market index climbs during July

The National Association of Home Builders says its housing market index climbed in July to the highest level in nearly a year, as low interest rates and other incentives helped builders woo homebuyers.

The Washington-based trade association said Thursday the index rose two points to 17, its highest reading since it was 17 in September.

Index readings lower than 50 signal negative sentiment about the market. The last time it was above 50 was in April 2006.

The report reflects a survey of 484 residential developers nationwide, tracking builders' perceptions of market conditions.

CHARLOTTE, N.C.

JPMorgan Chase profits up 36 percent in quarter

JPMorgan Chase & Co. reported a 36 percent jump in second-quarter profits Thursday, easily surpassing analysts' forecasts as huge gains in its investment banking business outweighed higher losses from bad loans.

JPMorgan earned $2.72 billion for the April-June period, up from $2 billion a year ago. Investment banking profits more than tripled to $1.5 billion on higher underwriting fees and gains in its bonds business.

At the same time, JPMorgan also reported higher losses in consumer lending and credit cards. The bank said it set aside $9.7 billion for credit losses in the quarter, up from $4.29 billion a year earlier. It also set aside another $2 billion to cover future losses, bringing its total loss reserves to more than $30 billion.

NEW YORK

Hi, I'd like a venti chai and a tall pinot noir

Starbucks Corp. said Thursday it is wiping its name from one of its Seattle-area stores and adding alcohol to the menu.

The Seattle-based gourmet coffee chain said it is changing the name of one of its existing stores in its hometown to a name that reflects the neighborhood location. The store will be called 15th Avenue Coffee and Tea. It will open next week and will serve coffee and tea as well as wine and beer.

The company said it will then open two more Seattle-area stores without the Starbucks name in locations that aren't now Starbucks stores.