IN BRIEF
Debt downgraded for Western Alliance
Moody's Investors Service on Monday downgraded senior unsecured debt at Las Vegas-based Western Alliance Bancorporation to Ba3, below investment grade, from Baa3.
Bank of Nevada is one of Western Alliance's bank subsidiaries.
The debt rating service lowered Western Alliance's overall financial strength to D plus from C minus. Moody's also gave Wells Fargo & Co. a D plus rating for financial strength recently. Bank of America Corp. was lowered to D minus.
Western Alliance shares fell 10 cents, or 1.98 percent, Monday to close at $4.94 on the New York Stock Exchange.
ATLANTIC CITY
Official: Wind power could replace coal
Windmills off the East Coast could generate enough electricity to replace most, if not all, the coal-fired power plants in the United States, Interior Secretary Ken Salazar said Monday.
But those numbers were challenged as "overly optimistic" by a coal industry group, which noted that half the nation's electricity now comes from coal-fired power plants.
The secretary spoke at a public hearing in Atlantic City on how the nation's offshore areas can be tapped to meet America's energy needs.
Salazar said ocean winds along the East Coast can generate 1 million megawatts of power, roughly the equivalent of 3,000 medium-sized coal-fired power plants, or nearly five times the number of coal plants now operating in the United States, according to the Energy Department.
Salazar could not estimate how many windmills might be needed to generate 1 million megawatts of power, saying it would depend on their size and how far from the coast they were.
NEW YORK
Sallie Mae planning to add 2,000 jobs in U.S.
Sallie Mae gave some hope to the unemployed Monday, announcing it will bring 2,000 jobs to the U.S. within the next 18 months as it shifts call centers and other operations from overseas.
The move marks somewhat of a turnaround for the nation's largest private student lender, which two years ago was faced with the need to slash costs amid collapsing capital markets.
Sallie Mae quickly scuttled jobs overseas as part of a plan to save about $300 million over a 12-month period.
SAN JOSE, Calif.
If buyout fails, Sun will have to regroup
Without IBM Corp.'s $7 billion takeover offer, Sun Microsystems Inc., a Silicon Valley rebel known for independence, is possibly alone again. Unless a new suitor somehow emerges, Sun will have to overcome the wobbly finances that forced it to shop itself around.
The two sides had been nearing an agreement before the weekend. But Sun balked at IBM's last price of $9.40 per share, which had come down from earlier offers but still was about double Sun's stock price before word of the negotiations leaked last month. Sun canceled IBM's exclusive negotiating rights, and IBM withdrew its offer, people familiar with the situation told The Associated Press. These people requested anonymity because they weren't authorized to disclose details of the talks.
IBM and Sun may still end up together. Investors appear to be taking that prospect into account, as Sun's stock hasn't fallen all the way back to the $4 to $5 range it occupied before the acquisition discussions surfaced.
NEW YORK
Blockbuster warns about its viability
Movie rental company Blockbuster Inc. said Monday the risk that it may not complete financing deals raises "substantial doubt" about its ability to continue as a going concern.
Dallas-based Blockbuster, which has struggled amid the rising popularity of DVD-by-mail services like Netflix, disclosed the warning in a filing with the Securities and Exchange Commission. The company had already cautioned last month that its auditor was likely to raise doubts about its ability to stay in business.
WASHINGTON
Three-month bill rates dip in Treasury auction
Interest rates on short-term Treasury bills were mixed in Monday's auction, with rates on three-month bills falling to the lowest level in two months while rates on six-month bills edged up.
The Treasury Department auctioned $31 billion in three-month bills at a discount rate of 0.195 percent, down from 0.225 percent last week, and $29 billion in six-month bills at a discount rate of 0.42 percent, up from 0.39 percent last week.
NEW YORK
Treasury prices drop ahead of more sales
Treasury prices mostly fell Monday after the effects of the Federal Reserve's purchase of government debt waned ahead of more auctions this week.
In late trading, the benchmark 10-year Treasury note fell 0.25 points to 98.47 points. Its yield rose to 2.93 percent from 2.90 percent late Friday.
The 30-year bond fell 0.63 points to 95.84, and its yield rose to 3.75 percent from 3.72 percent.
