


Business briefing
Economy grew faster
at year-end

The U.S. economy grew a bit faster at the end of last year, spurred by healthier sales for manufacturers and steady hiring that is slowly pushing up wages.
The Federal Reserve said Wednesday that its survey of economic conditions around the country found that growth was modest or moderate in 10 of its 12 districts. That is an improvement from seven in the previous report. Growth was slight in the Cleveland district and largely unchanged in New York.
Fed officials will study the survey, known as the Beige Book, in preparation for their next meeting Jan. 31- Feb. 1. They will consider whether to raise short-term interest rates at that meeting, though few economists expect them to move so soon after their increase last month.
Manufacturers reported better sales or more orders in 10 of 12 districts, a solid turnaround from earlier this year. Cutbacks by oil and gas drillers had reduced demand for steel pipe and other factory goods.
The Fed boosted the short-term rate it controls to a range of 0.5 percent to 0.75 percent at its December meeting. Fed officials projected last month that they would raise rates three times this year. Most analysts expect the first hike will occur in March, if it happens at all.
Accounting rule will cost GM $1M
General Motors will pay the federal government a $1 million civil penalty for violating accounting rules involving the company's deadly ignition switch scandal.
The penalty, announced Wednesday as a settlement with the Securities and Exchange Commission, is for failing to have accounting controls in place to determine the potential for a recall and estimate the possible loss.
GM said it consented to an SEC cease-and-desist order without admitting wrongdoing.
The order found that GM knew in the spring of 2012 that the switches were a safety issue but failed to tell accountants until November of 2013. Accountants couldn't evaluate whether there would be a recall.
Dakota Access pipeline study a go
A federal judge said Wednesday he won't keep the Army Corps of Engineers from launching a full environmental study of the $3.8 billion Dakota Access pipeline's disputed crossing under a Missouri River reservoir in North Dakota.
U.S. District Judge James Boasberg denied Texas-based Energy Transfer Partners' request to stop the Corps from proceeding until he rules on whether ETP already has permission to lay pipe under Lake Oahe, the water source for the Standing Rock Sioux tribe.
ETP won't be able to lay pipe under the reservoir while the study is ongoing; it is currently blocked from doing so anyway.
THE BOTTOM LINE
A federal suit filed in Manhattan on Wednesday accused the bank of charging black and Latino borrowers higher interest rates and fees for mortgages from 2006 to at least 2009, causing them to pay an average of an extra thousand dollars.