IN BRIEF
WASHINGTON
Citigroup increases base pay for workers
Citigroup Inc. is increasing the base salaries of many employees -- reportedly by as much as 50 percent for some workers -- as it restructures their compensation amid government restrictions on bonuses.
The Obama administration reacted by pledging to aggressively apply a new law governing compensation at companies like Citigroup that have received billions of dollars in taxpayer-funded bailout support.
The higher salaries at Citigroup are not the equivalent of annual raises because bonuses are being lowered, according to a person familiar with the matter who requested anonymity because the plans have not been made public.
The person said the changes would not affect the amount of an employee's compensation.
WASHINGTON
New rules proposed for money market funds
Federal regulators on Wednesday proposed tightened rules for money-market mutual funds that will require them to hold a reserve of assets that could be easily sold and to invest only in the highest quality securities.
The Securities and Exchange Commission action came after a $60 billion money fund "broke the buck," exposing investors to losses that could ultimately reach about 8 cents on the dollar. The value of the Primary Reserve Fund's assets in September fell to 97 cents per investor dollar -- below the dollar-for-dollar level needed for full repayment.
The SEC voted, 5-0, to issue the rule changes for the popular money-market funds, which hold about $3.8 trillion in assets, for public comment.
NEW YORK
Energy prices decline on inventory news
Energy prices fell Wednesday after the government reported that unused gasoline in storage grew for the third-straight week, another signal that consumer demand for energy is waning.
Benchmark crude for August delivery lost 57 cents to settle at $68.67 a barrel on the New York Mercantile Exchange. In London, Brent prices fell 47 cents to settle at $68.33 a barrel on the ICE Futures exchange.
At the pump, retail gasoline prices continued to decline this week after peaking Sunday at $2.693 a gallon. The national average for a gallon of gas shed another 0.7 cents overnight to $2.676 a gallon, according to auto club AAA, Wright Express and Oil Price Information Service.
OMAHA, Neb.
Lunch with Buffett goes for $2.1 million
It's extremely unlikely billionaire Warren Buffett would ever pay $2.1 million for lunch, because the Omaha investor prefers hamburgers and Cherry Cokes.
But Chinese investment fund manager Zhao Danyang paid that much to dine with Berkshire Hathaway's chairman and CEO Wednesday as part of a charity auction.
Every year, Buffett auctions off one lunch and donates the proceeds to the Glide Foundation, which provides social services to San Francisco's homeless and poor.
A new lunch auction began Sunday and runs through Friday. The top bid on eBay Wednesday afternoon was $135,678, but that is almost certain to grow before the auction ends.
NEW YORK
Treasury yields rise as Fed weighs in on rates
After three straight days of gains, government bonds lost ground after the Fed decided to keep rates within a range of zero to 0.25 percent.
The yield on the 10-year Treasury note rose to 3.69 percent from 3.63 percent late Tuesday.
Yields are closely tied to rates on mortgages and other consumer loans. The 10-year note's price fell 0.53 points to 95.31.
The 30-year bond's yield rose to 4.43 percent from 4.36 percent, and its price fell 1.22 to 96.97.
