- - Wednesday, July 27, 2011

GOLD

Price drops amid risk aversion

NEW YORK — Gold fell Wednesday after hitting record highs near $1,630 an ounce, as a broad sell-off of riskier assets prompted bullion investors to take profits amid mounting fears of a U.S. debt default.

Gold initially benefited on news a vote on a deficit reduction plan offered by House Speaker John A. Boehner was pushed back to Thursday from Wednesday amid stiff opposition by his fellow Republicans and Democrats.

Trading volume just part way through the session was the highest since May and was on track to be one of the heaviest trading days of the year as investors focused on the gold market as a safe haven on looming risks of a U.S. default.

COURTS

Fannie/Freddie regulator sues UBS for mortgage losses

NEW YORK — The regulator for Fannie Mae and Freddie Mac sued UBS AG, accusing the Swiss bank of misleading the housing agencies into buying risky mortgage debt, resulting in more than $900 million of losses.

The lawsuit by the U.S. Federal Housing Finance Agency is the latest effort by Washington to prop up the government-sponsored enterprises (GSEs), whose September 2008 federal seizure has so far cost taxpayers more than $135 billion.

The regulator said Wednesday that more lawsuits are planned to recover losses by Fannie Mae and Freddie Mac in private-label debt.

The GSEs in 2010 guaranteed 70 percent of single-family mortgage-backed securities issued, and provided $1.03 trillion of market liquidity that year, an FHFA report issued to Congress in June shows.

MICHIGAN

Whole Foods to open store within city

DETROIT — Whole Foods Market Inc. plans to open its first store in Detroit, which would make it the only national grocery chain operating in the city limits.

The 20,000-square-foot supermarket in the Midtown neighborhood, slated to open in 2013, will employ about 75 people, Whole Foods executive operations coordinator Red Elk Banks told the Associated Press.

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