FBI probing Fannie, Freddie, Lehman, AIG: report

WASHINGTON (Reuters) - The FBI is investigating Fannie Mae (FNM.N), Freddie Mac (FRE.N), Lehman Brothers Holdings Inc. (LEHMQ.PK) and insurer American International Group Inc. (AIG.N) and their senior executives for potential mortgage fraud, CNN reported on Tuesday. The FBI did not provide specifics but said the inquiries were part of a broader probe, CNN said.

Buffett to invest $5 billion in Goldman

NEW YORK (Reuters) - Warren Buffett's Berkshire Hathaway Inc (BRKa.N) (BRKb.N) will invest $5 billion in Goldman Sachs Group Inc (GS.N), in a major boost for the Wall Street bank from perhaps the world's best-known investor. "It's a vote of confidence which is gold plated," said Michael Holland, a money manager at Holland & Co in New York. "You don't get better than this."

Bailout faces delays as Goldman gets boost

NEW YORK (Reuters) - Architects of a $700 billion bailout plan urged U.S. lawmakers to act swiftly or face dire economic consequences as global stock markets fell for a second day on growing concern the rescue may be delayed. But financial markets got a shot in the arm late Tuesday when one of America's most-respected investors, Warren Buffett, bought a stake in Wall Street's most powerful firm, Goldman Sachs Group Inc (GS.N). Berkshire Hathaway's (BRKa.N) (BRKb.N)surprise $5 billion deal for about 9 percent of Goldman helped U.S. stock futures pare losses.

Stocks end down, but futures fly on Buffett's move

NEW YORK (Reuters) - Stocks fell on Tuesday on fear that congressional wrangling could delay a proposed $700 billion plan to rescue the financial sector, increasing worries about the struggling U.S. economy. But index futures surged in extended trading after Warren Buffett's Berkshire Hathaway surprised investors with a $5 billion investment in Goldman Sachs Group (GS.N).

Investor group working with AIG to thwart Fed takeover

NEW YORK (Reuters) - American International Group Inc (AIG.N) is cooperating with a large investor group working to thwart a government takeover, a lawyer for investors said. Representatives of the investor group will be briefed by the company on its financial position as early as Tuesday afternoon, said Mickey Kantor, of law firm Mayer Brown.

Wal-Mart small grocery stores set for Arizona start

PHOENIX (Reuters) - Wal-Mart Stores Inc (WMT.N) plans to open its "Marketside" small-scale grocery stores in the Phoenix, Arizona area on October 4, setting up a showdown with rival Tesco Plc (TSCO.L) in the market for fresh groceries and prepared foods. In addition to convenience, Marketside will also convey its parent company's message of affordable prices.

Oil falls 2.5 percent as bailout worries weigh

LONDON (Reuters) - Oil prices fell 2.5 percent on Tuesday, reversing direction after Monday's dramatic rally as dealers focused on slowing global energy demand and doubts over a U.S. plan to rescue the financial sector. A rebound in the U.S. dollar added to weakness across commodities markets, continuing a strong negative correlation between the greenback and commodities that has been in place for several months.

Chrysler unveils electric cars, stumps for loans

AUBURN HILLS, Michigan (Reuters) - Chrysler LLC on Tuesday showed off a trio of electric vehicles in development -- including battery-powered versions of its Chrysler minivan and Jeep Wrangler -- and vowed to bring one of them to showrooms by 2010. By showing off prototypes still in the planning stage, Chrysler was hoping to shake a costly association with gas-guzzling trucks and dispel doubts about the strength of its vehicle development program under the ownership of Cerberus Capital Management (CBS.UL).

Credit crisis concerns once again pound GE shares

BOSTON (Reuters) - General Electric Co (GE.N) shares fell about 4 percent on Tuesday after a stock analyst at Goldman Sachs cut his growth forecast for the conglomerate and investors worried about the prospects for a $700 billion bailout by Washington of the financial system. Shares of the second-largest U.S. company by market value have been volatile and last week hit five-year lows, reflecting investors' concerns about how its GE Capital business is holding up in the current tight credit environment. GE Capital accounts for about half of General Electric's profits.

Longs' largest holder says higher bid worth risk

CHICAGO (Reuters) - Longs Drug Stores Corp (LDG.N) rebuffed a renewed takeover push by Walgreen Co (WAG.N), while Longs' largest shareholder said it was willing to take the risk a deal with Walgreen could bring, to get the best price. Longs agreed to be bought by CVS Caremark Corp (CVS.N) for $71.50 per share, or $2.57 billion, in August. Walgreen swooped in with a bid of $75 per share a month later.

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