Market drifts...Fed to buy commercial paper...AIG bailout probed



NEW YORK (AP) The stock markets seem to be drifting a bit today as traders catch their breaths from yesterday's big selloff.

The Dow has been up and down in a narrow range.

Washington (AP) The Federal Reserve is buying short term loans as a way to free up capital for businesses that are strapped for operating funds. Officials will only says that they expect to spend a substantial amount of money to buy the commercial paper.

WASHINGTON (AP) Top executives at American International Group apparently tried to hide risky investments from auditors as the company's losses mounted. Congressman Henry Waxman, head of the House Oversight Committee, also says that even as AIG was losing money, the executives were pulling more money out through stock buybacks and big dividends.

WASHINGTON (AP) The drug companies say children under 4 should not be given over-the-counter cough and cold remedies. The voluntary change comes after federal health officials said there is little evidence that the medications work on young children.

Pediatricians have been calling for an outright ban on such products for children.

WILLIAMS, Calif. (AP) The mother of the man who was behind the wheel of a bus that crashed in California says he "wasn't the best driver." Police say Quintin Watts may have been on prescription or nonprescription drugs on Sunday. Eight people were killed when the bus overturned. Watts is still hospitalized in fair condition.

(Copyright 2008 by The Associated Press. All Rights Reserved.) APNP 10-07-08 1053CDT | save this article / add to your favorites list