U.S.

Citigroup Will Split in Two After Posting $8.29 Billion Loss; Shares Gain Citigroup Inc. posted an $8.29 billion loss, twice as much as analysts estimated, and said it will split in two under Chief Executive Officer Vikram Pandit’s plan to rebuild a capital base eroded by the credit crisis.

Bank of America Has First Loss in 17 Years, Gets $138 Billion U.S. Bailout Bank of America Corp., the largest U.S. bank by assets, posted its first loss since 1991 and cut the dividend to a penny after receiving emergency government funds to support the acquisition of Merrill Lynch & Co.

Stocks in U.S. Climb on Government Aid for Bank of America; Intel Advances U.S. stocks advanced for a second day after the government gave further support to Bank of America Corp. in an effort to prevent the financial crisis from deepening and Citigroup Inc. said it will split in two.

Consumer Prices in U.S. Increased 0.1% in 2008, Smallest Gain Since 1954 The cost of living in the U.S. fell in December as the recession deepened, capping the smallest annual gain in a half century.

U.S. Regulators Pushed Toward `Dramatic' Steps to Bolster Banking System Renewed questions about U.S. banks’ viability are pushing regulators toward a new plan that would remove toxic assets from bank balance sheets, in what may become the biggest effort yet to unfreeze lending.

Wal-Mart, Pepsi Bottling Lead Rebound in Bond Sales as Credit Markets Thaw Wal-Mart Stores Inc., the world’s biggest retailer, and soft-drink distributor Pepsi Bottling Group Inc. led a resurgence in sales of bonds sold by non-financial companies in a sign that credit markets are beginning to thaw.

Latin America

Mexico Lowers Benchmark Rate to 7.75% in First Cut in Almost Three Years Mexico’s central bank reduced its benchmark interest rate for the first time in almost three years in a bid to bolster the country’s slumping economy.

Fraga Targets Brazilian Private Equity, Illiquid Shares to Offset Losses Arminio Fraga, the former Brazilian central bank president who runs investment company Gavea Investimentos Ltda., is increasing holdings of private equity and thinly traded shares to counter losses at his flagship fund.

Bovespa Climbs on Commodities, Interest Rate-Cut Speculation; Ipsa Rises Brazilian stocks rose for a second day, trimming this week’s decline, as a rally in commodity prices and the prospect of steeper cuts in interest rates boosted steelmakers and homebuilders.

Brazilian Retail Sales Rose 5.1% in November, Slowest Pace in 28 Months Brazil’s retail sales rose in November at the slowest pace in 28 months, adding to evidence that Latin America’s biggest economy stalled.

Petrobras In `Comfortable' Position Even After Oil-Reserve Cut, Itau Says Petroleo Brasileiro SA’s proven oil and gas reserves put the company in a “comfortable position,” according to Paula Kovarsky, an oil and gas analyst at Itau Corretora.

Exclusive

Madoff's `Street-Smart' Aide Frank DiPascali Was Go-To Guy for Investors Frank DiPascali Jr. joined Bernard Madoff’s firm a year after graduating from a Catholic high school in Queens, New York. Over a 33-year career, he rose through the ranks, eventually calling himself chief financial officer.

Trichet Vision Unravels as Investors Demand Higher Rates From Spain, Italy European Central Bank President Jean-Claude Trichet’s vision of economies converging behind the shield of a shared currency may be unraveling.

Putin Reaps Plaudits at Home for Freezing Ukraine, EU Through Gas Standoff Russian Prime Minister Vladimir Putin’s standoff with Ukraine over supplies of natural gas may have angered European Union leaders and denied heat to millions; at home, it’s winning him plaudits.

Baltic Protesters Take to Streets as EU-Worst Economies Shake Governments The Baltic countries of Latvia, Lithuania and Estonia are facing unrest and street protests over government austerity measures that may make political leaders casualties of the worst economic collapse in the European Union.

Isle of Man's Safety, Secrecy as U.K. Tax Haven Challenged by Brown, Obama The three-legged emblem on the red Isle of Man flag in Allan Bell’s office has a motto that the British tax haven’s treasury minister hopes stays true.

Film, Porn Shoots Welcomed by Los Angeles Homeowners Squeezed by Recess Jayshree Gupta reclined on an English-style sofa in her Beverly Hills penthouse as crews buzzed around taping protective paper over the hardwood floors and wheeling in crates of camera gear.