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IN BRIEF

Compiled from wire reports

January 6, 2009

U.S. consumer bankruptcy filings jumped nearly 33 percent in 2008 amid a recession that's expected to keep filings rising into the new year. Overall consumer filings reached 1,064,927 last year, up from 801,840 in 2007, according to data published by the American Bankruptcy Institute based in Alexandria, Va. A recession that began in December 2007 has stretched many consumers who are turning to bankruptcy protection amid job losses, mortgage foreclosures and heavy personal debt. "Consumers are under great financial stress, with no immediate end in sight," Samuel Gerdano, the institute's executive director, said in a news release yesterday. "We expect the upward spike in personal bankruptcies to continue in 2009."

Several of the nation's largest airlines have joined in a lawsuit to block stronger federal rules on crew rest during the longest international flights. The airlines say that the Federal Aviation Administration bypassed usual rule-making procedures and denied them the right to comment before it notified American Airlines and Continental Airlines Inc. of new rules in late October. The petition was filed Dec. 24 by American, Continental, United Airlines, US Airways, JetBlue and two smaller carriers. The carriers said the new rules would saddle them with "substantial burdens and costs." The FAA rules would require that pilots on the longest international flights get more rest before flying again. The extra rest would be required even when only 10 percent of flights on a particular route exceed 16 hours.

Managed care provider Cigna Corp. said yesterday the slumping economy has forced it to cut roughly 1,100 jobs, as it deals with employer customers who are making cuts and reducing the number of people covered by insurance. The Philadelphia-based insurer will cut about 1,000 U.S. positions and 100 abroad. The layoffs amount to about 4 percent of its workforce of 28,000 people.

Borders Group Inc. named Ron Marshall, 54, as its new chief executive yesterday in a management shake-up at the struggling Ann Arbor, Mich.- based bookseller. It warned its stock could be delisted from the New York Stock Exchange and reported weak holiday sales. The stock traded at $11.60 a year ago and has lost nearly all of its value recently amid financing troubles. Marshall is known for his ability to turn businesses around.

Spending on U.S. construc- tion projects fell less than half as much as forecast in November, reflecting gains in commercial and government building that partially cushioned the slump in residential real estate. The 0.6 percent decline followed a 0.4 percent drop the prior month that was smaller than previously reported, the Commerce Department said yesterday. The downturn in residential real estate is likely to extend well into a fourth year as prices slide and prospective buyers find it hard to get credit. The building slump is one reason President-elect Barack Obama has pledged to invest in roads, schools and the U.S. energy network in something akin to the 1950s-era interstate highway construction boom. Private residential construction spending fell 4.2 percent, the most since July, after dropping 2.1 percent the prior month. Nonresidential construction, including public projects, increased 1 percent, and was up 9.2 percent from a year earlier.

Consumers who apply for federal coupons to pay for converter boxes ahead of the Feb. 17 transition to digital TV broadcasts are being placed on a waiting list and may not receive their vouchers before the switchover, the Commerce Department said yesterday. The waiting list was created Sunday after the National Telecommunications and Information Administration hit a $1.34-billion funding limit set by Congress. The list already has requests for 103,000 coupons. Congress mandated that broadcasters switch from analog to digital broadcasts to free up more room in the wireless spec- trum. Coupon requests have ticked up sharply since December as the government, broadcasters and others have ramped up efforts to explain the transition. Consumers also can sign up for cable or satellite TV or buy a set with a digital tuner to ensure their sets don't go dark.