AUTOMOTIVE

DELPHI SAYS LIQUIDITY OVERSTATED, TREASURER RESIGNS

Delphi, the auto parts maker whose accounting is being investigated by federal regulators, said an internal inquiry found that it misled credit-rating companies and the board. Treasurer Pam Geller resigned.

Between the time it was spun off from General Motors in 1999 and the fourth quarter of 2004, Delphi said it sold more of its European account receivables than previously disclosed. That decision contributed to a quarterly cash overstatement by as much as $374 million in 2001, the company said in an SEC filing yesterday.

Delphi shares and bonds tumbled, reflecting doubts about the company’s credibility and financial condition.

– Bloomberg News

ECONOMY

JOBLESS CLAIMS POST BIGGEST DROP IN SEVEN WEEKS

The number of people filing new claims for unemployment benefits fell by 21,000 last week, the biggest decline in seven weeks, the government reported yesterday.

The Labor Department said 330,000 newly laid-off workers filed benefit claims last week after a surge of 27,000 new claims the previous week, which had been the biggest one-week jump since early 2004.

Labor Department analysts attributed the improvement to fewer layoffs in the auto industry and a shortened workweek because of the Memorial Day holiday, which gave unemployed workers one less day to file claims.

The four-week moving average for claims, which smooths out weekly volatility, also showed improvement last week, falling to 331,750, down from 334,500 the previous week.

– Associated Press

EMPLOYMENT

REPUBLICANS CONSIDER PROPOSAL TO RAISE RETIREMENT AGE

Key Senate Republicans privately reviewed suggestions yesterday for raising the Social Security retirement age while limiting future benefits for upper-wage earners, officials said, as they sought momentum for legislation atop President Bush’s second-term domestic agenda. At the same time, the prospects for swift Senate action on the controversial measure appeared to dim during the day, the result of internal GOP disagreement as well as implacable Democratic opposition to Mr. Bush’s call for personal accounts under Social Security.

“I don’t look for it until later on in the fall,” said Senator Lott, a Republican of Mississippi. Mr. Lott made his comments after he and other Republicans on the Senate Finance Committee attended a meeting where the panel’s chairman, Senator Grassley, a Republican of Iowa, outlined suggestions to achieve financial solvency for the Social Security program.

– Associated Press