Snow promises cut in U.S. budget deficit

U.S. Treasury Secretary John Snow told global economists worried about the tide of red ink in Washington that the huge U.S. budget deficit would be halved by the end of 2008.

Snow, above, made the pledge Tuesday at the annual meeting of the International Monetary Fund and World Bank, both of which have cited the growing U.S. trade and budget deficits as dark clouds looming over the fragile global recovery.

He offered few details on how the United States would reduce the deficit, which the Treasury department has said reached $400.5 billion in the first 11 months of the 2003 budget year — twice the total for the same period a year earlier.

Federal Trade Commission

AOL agrees to improve its customer service

America Online Inc. says it will improve the way it deals with customers who want to cancel their Internet service, resolving federal allegations that the company used unfair billing practices.

The Federal Trade Commission settlement announced Tuesday also requires AOL and its subsidiary, CompuServe Interactive Services Inc., to keep promises for delivering rebates for online services.

The FTC released a complaint with the settlement accusing AOL of continuing to bill its subscribers after they asked to cancel their accounts.

The settlement did not require AOL to pay any fines.

Lawsuit

Former Tyco leaders win court argument

Former Tyco International executives Dennis Kozlowski and Mark Swartz will be allowed to argue that millions they are accused of stealing were actually loans and bonuses approved by the company’s board and disclosed to its outside auditors, a judge ruled Tuesday.

Prosecutors tried to block a defense argument that there was no criminal intent by Kozlowski and Swartz because the transfer of funds had been approved by the right people, but State Supreme Court Justice Michael Obus rejected the motion.

Kozlowski, Tyco’s former chief executive, and Swartz, former chief financial officer, were indicted on charges of grand larceny for allegedly stealing more than $600 million from the company. Both have pleaded innocent.

Wall Street

Verizon lowers outlook

Verizon Communications Inc. lowered its 2003 earnings forecast, blaming weakness in its core residential telephone business amid competition from cell phones and cable Internet service.

The company’s largest telephone service provider now expects earnings of $2.56 per share to $2.60 per share compared to previous estimates of $2.70 per share to $2.80 per share.