The Dow Jones industrial average moved 1.95 higher to 3,755.76 and broader market indicators made minor moves.
Peat Marwick pays $186-million to settle
WASHINGTON _ Peat Marwick, one of the nation's biggest accounting firms, will pay the government $186.5-million to settle charges it conducted improper audits of failed savings institutions.
Federal regulators said Tuesday the firm agreed to pay $128-million to the Resolution Trust Corp. and $58.5-million to the Federal Deposit Insurance Corp., two federal banking regulatory agencies.
Peat Marwick had denied the claims made by the two agencies, and in the settlement neither admitted nor denied wrongdoing.
PAINEWEBBER REPLACES FUND CHIEF. PaineWebber Group Inc. replaced the head of its mutual fund division Tuesday, the latest casualty of an embarrassing $268-million bailout of a bond fund that dabbled in risky securities. Paul Guenther, PaineWebber's president, took over Joyce Fensterstock's position as president of Mitchell Hutchens Asset Management, the mutual fund subsidiary, until a permanent replacement is found, a company spokeswoman said.
AT&T-McCAW PLAN OPPOSED. Bell Atlantic Corp. and Nynex Corp. filed a lawsuit Tuesday in an effort to block AT&T Corp.'s proposed $12.6-billion acquisition of McCaw Cellular Communications Inc. The two regional Bell operating companies allege the merger would "inflict severe damage" on cellular competitors and have a "particularly severe anti-competitive effect" on Nynex and Bell Atlantic.
TAMPA PHAR-MOR CLOSING. Phar-Mor Inc., operating under bankruptcy court protection, said Tuesday it will close 25 drugstores in five states. Among the stores to be closed is its Tampa location on S Dale Mabry Boulevard, which will close Aug. 25. The Youngstown, Ohio-based discount chain said its decision to shut down the 25 stores in Illinois, Texas, Michigan, Florida and Ohio would leave it with 143 stores. The other Florida store affected is in Hallandale.
LENNAR BUILDING STANDARDS CHALLENGED. A St. Petersburg lawyer filed a lawsuit Tuesday in Pinellas County civil court against Lennar Homes, claiming that 100 houses built from 1985 through 1989 in the Franklin Square development in Palm Harbor failed to meet building codes. Dan Moody says in the suit that the houses lack such things as plywood in exterior walls and sufficient tie-downs and bracing. The development named in the suit, which seeks class-action status, is on the east side of County Road 1, north of Curlew Road. Lennar spokesman Robert Boorchert said company officials had not seen the suit, but they will investigate the claims and "act appropriately."
Best Mortgage Rate
The best 30-year fixed mortgage rate in the Tampa Bay area as reported Tuesday was 8.625 percent with 0 points offered by, among others, Mandarin Mortgage (813) 446-4119, Bayview Financial (813) 854-5262, and Mortgage Financial Network (813) 530-9903. The rate is based on a $100,000 loan with a 5 to 10 percent down payment. For additional mortgage rate information, see the complete list of rates offered by area institutions in Saturday's Homes & Garden Section. The information is supplied by The National Financial News Services in West Chester, Pa.
DOW DOLLAR YIELD
30 INDUSTRIALS VS. JAPANESE YEN 30-YEAR U.S. BOND
3755.76 101.28 7.57
+1.95 -0.25 +0.03