Biz bits

Feds shut Sparta bank as year's total hits 119

CHARLOTTE, N.C. --- Regulators on Friday shut small banks in Georgia, Michigan, Minnesota and Missouri, bringing the number of bank failures this year to 119 amid the struggling economy and a cascade of defaults on loans.

The Federal Deposit Insurance Corp. took over United Security Bank, based in Sparta, Ga., with $157 million in assets and $150 million in deposits, and Home Federal Savings Bank in Detroit, with $14.9 million in assets and $12.8 million in deposits.

The government agency also closed Prosperan Bank, based in Oakdale, Minn., with $199.5 million in assets and $175.6 million in deposits, and Gateway Bank in St. Louis, with $27.7 million in assets and $27.9 million in deposits.

Worried consumers slash borrowing again

WASHINGTON --- Consumers borrowed less for a record eighth straight month in September amid rising unemployment and tight credit conditions. Economists worry the declines in borrowing will drag on the fledgling recovery.

The Federal Reserve says borrowing fell at an annual rate of $14.8 billion in September.

That's the biggest decline since July and is larger than the $10 billion drop economists expected.

Buffett's firm earns $3.2 billion in quarter

OMAHA, NEB. --- Warren Buffett's company said Friday that its third-quarter profit tripled as the improving economy and stock market boosted the value of Berkshire Hathaway Inc.'s derivative contracts.

Berkshire said it generated $3.2 billion, or $2,087 per share, in net income. That's up significantly from last year's $1.1 billion, or $682 per share.

In other news

OIL PRICES TUMBLED Friday after the government said the U.S. unemployment rate topped 10 percent for the first time since 1983. Benchmark crude for December delivery gave up $2.19 to settle at $77.43 a barrel on the New York Mercantile Exchange.

AIG SAID FRIDAY it was profitable for the second straight quarter as its core insurance operations continue to stabilize after the company's bailout by the government last year.

FREDDIE MAC'S LOSSES narrowed to $6.3 billion in the third quarter, but the government-controlled mortgage finance company didn't need a federal cash infusion. The McLean, Va.-based company has received about $51 billion since it was seized by federal regulators in September 2008, but said it didn't need any more money for the second-straight quarter.

FIRST IT WAS BOOKS. Now it's DVDs. Wal-Mart Stores Inc. started another price war Thursday, trimming the online preorder prices of some upcoming DVDs after its price cut on books last month. And, once again, competitors Amazon.com and Target scrambled to match the prices.