U.S. markets drop on Fed announcement

NEW YORK, Sept. 23 (UPI) -- U.S. markets dove late in the trading session after the U.S. Federal Reserve said it would keep lending rates unchanged.

The Fed left bank-to-bank lending rates at zero to 0.25 percent and said it would maintain its goal of buying $1.25 trillion in mortgage-backed securities and agency debt.

Although the Fed said "economic activity has picked up following it severe downturn," the announcement sent stocks sharply downward. The Dow Jones industrial average, within 100 points of 10,000 at 3 p.m., lost more than 150 points by the close of trading.

The DJIA closed down 81.32 points, 0.83 percent, to 9,748.55. The Standard & Poor's 500 lost 1.01 percent, 10.79 points, to 1,060.87. The Nasdaq composite index dropped 0.69 percent, 14.88 points, to 2,131.42.

On the New York Stock Exchange, 1,063 stocks advanced and 1,958 declined on a volume of 5.5 billion shares traded.

The benchmark 10-year Treasury rose 7/32 to yield 3.417 percent.

The euro fell to $1.473 from Tuesday's $1.443. Against the yen, the dollar rose to 91.32 yen from Tuesday's 91.31 yen.

The stock market in Japan was closed for a holiday.

In Britain, the FTSE 100 index lost 0.06 percent, 3.23 points, to 5,139.37.

Bank of America to revamp overdraft policy

CHARLOTTE, N.C., Sept. 23 (UPI) -- U.S. banking giant Bank of America said it would revamp its overdraft policy, lowering fees and offering customers a chance to opt out of overdraft coverage.

The bank said on Oct. 19 it would stop charging overdraft fees for accounts overdrawn by less than $10 per day, the Charlotte, N.C., Observer reported Wednesday.

The bank also said it would cap overdraft charges at four per day. The current policy caps the $35 charges at 10 per day.

Customers can also inform the bank they no longer want overdrafts covered.

Banks view covering overdrafts as a service -- essentially a short term loan with a fixed fee that kicks in when an account is overdrawn. Many customers, however, see the fees as high charges for small money management mistakes.

Banks have been criticized for not making the policy optional.

The head of Bank of America's consumer banking Brian Moynihan said, "customers continued to be stretched more and more," in a tight economy, denying threats from Washington legislators to force the issue with a new law influenced the bank's decision.

Economist Mike Moebs of Moebs Services, said, "I highly praise Bank of America. Even if it's totally political, it's a huge step in the right direction.

Laptop theft compromises Madoff victims

NEW YORK, Sept. 23 (UPI) -- Personal information concerning victims of Bernard Madoff's Ponzi scheme was on a laptop computer stolen in Dallas, a firm processing victims' claims said.

Tim Yost, a spokesman for AlixPartners said, "we have no reason to believe it (personal information) has been compromised," in a theft that occurred in a parking lot in July, Newsday reported Wednesday.

Police described the theft as one of several "smash and grab" incidents that occurred on the same night.

Social security numbers, names, addresses and some investment information involving 2,246 Madoff investors was on the computer.

The court appointed trustee overseeing victims' claims Irving Picard has identified $13 billion in losses among 2,336 investors so far. To date, he has received more than 15,000 claims, the newspaper said.

Madoff, who pleaded guilty to 11 counts of fraud in March, is serving a 150-year prison sentence.

One investor, Richard Friedman of Jericho, N.Y., was affronted by the salt-in-the-wound theft of personal information.

"So, this happened two months ago and now they are first telling us. What are we, fourth-class citizens?" he said.

Fisker granted $529 million DOE loan

IRVINE, Calif., Sept. 23 (UPI) -- The U.S. Energy Department said it would loan California's luxury automaker Fisker Automotive Inc. $529 million to develop two alternative-energy vehicles.

The low-interest loan is the fourth grant to come out of the $25 billion automotive retooling loan project passed into law in September 2008, The Detroit News reported Wednesday.

Loans are given to companies to produce vehicles 25 percent more fuel efficient than cars already in production.

California's Tesla Motors Inc. was granted a $465 million loan in June to develop an electrically powered sedan that is expected to cost $49,900.

In June, Ford Motor Co. and Nissan Motor Co. were awarded grants totaling $7.5 billion.

Fisker's plans call for building a two alternative-fueled vehicles, including a plug-in hybrid expected to cost $88,000.

"Luxury buyers are going to be willing to spend more, allowing automakers to build more of the technology into the vehicles," autoconomy.com founder Erich Merkle told the News.

The Energy Department said the Fisker project would create or save thousands of jobs, including 5,000 jobs among U.S. parts suppliers.

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