Business Briefs

Worries about big insurer sink stocks

NEW YORK — Stocks sank in thin trading Monday as worries about American International Group touched off broader concerns that financial firms will face more trouble.

The major indexes lost about 2 percent. AIG was the steepest decliner among the 30 stocks that make up the Dow industrials after an analyst cut his price target on the world's largest insurer and after Fitch Ratings warned Friday that it might cut its ratings. AIG has been buffeted by investors' distaste for some of the complex debt instruments on its books.

Whales could force some ships to slow

WASHINGTON — The federal government is recommending a speed limit for commercial ships along the Atlantic coast, where collisions with the endangered right whale threaten its existence.

About 300 of the whales are left in the wild, and they migrate annually between their southeastern Atlantic breeding grounds to feeding areas off the Massachusetts coast, intersecting busy shipping lanes.

The rule would set a 10 knot speed limit within 23 miles of major mid-Atlantic ports and the whale's breeding and feeding areas for five years. The White House has disputed the science linking ship speed to whale deaths.

Facebook expands Scrabulous block

NEW YORK — A popular Scrabble clone already pulled from Facebook in the U.S. and Canada continued its tumble over the weekend as the online hangout extended its block of the game throughout most of the world.

Facebook said Monday it was forced to disable Scrabulous after one of Scrabble's rights owners, Mattel Inc., made a formal removal request. Scrabulous remains available in India, where its developers live and where Mattel has filed a lawsuit claiming violations of intellectual property.

Tough times pinch Postal Service

ST. LOUIS — The U.S. Postal Service could lose about $2 billion this year because of tough economic times, and it needs to change to meet the demands of the public, Postmaster General John Potter said Monday.

Potter told the National Association of Postmasters of the United States that the service is grappling with issues many businesses are facing, such as high fuel prices.

The Postal Service recently reported it lost $1.1 billion in its latest quarter. Mail volume was 48.5 billion pieces, a 5.5 percent drop compared to the same period last year.

Florida a haven for home loan frauds

NEW YORK — Reported incidents of mortgage fraud jumped 42 percent nationwide, with Florida reporting the highest number of cases, according to data released Monday.

Properties in the Sunshine State accounted for nearly a quarter of all mortgage fraud incidents, said Mortgage Asset Research Institute. California ranked second, followed by a tie for third among Illinois, Maryland and Michigan.

The most common mortgage fraud cases included misrepresenting income, employment history, and debt and assets.