The news at a glance

Fed: Bernanke sends no stimulus signal

Federal Reserve Chairman Ben Bernanke offered no suggestion during a highly anticipated speech last week in Jackson Hole, Wyo., that the central bank would take any new actions to improve the economy, said Greg Robb in MarketWatch.com. Last year, Bernanke used the annual conference of central bankers to reassure markets that the Fed would step in if the economy continued to struggle; several months later, it pumped $600 billion into the banking system. But the Fed could yet act. Bernanke reminded his audience that the central bank has “a range of tools” at its disposal, and announced that the Fed’s meeting this month would be extended by a day to explore whether the economy needs more stimulus.

The most notable aspect of Bernanke’s remarks was the blame he laid on Washington politicians for the economy’s woes, said Binyamin Appelbaum in The New York Times. Suggesting that the debt-ceiling debate had disrupted markets “and probably the economy as well,” Bernanke said the U.S. “would be well served by a better process for making fiscal decisions.” The remarks “went well beyond” what Bernanke has said in the past about how government action can hamper recovery.

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Tech: Google settles over Canadian drug ads

Google has agreed to a $500 million settlement with U.S. prosecutors for accepting advertising from Canadian pharmacies that sought to illegally ship prescription drugs into the U.S, said Joseph Menn and Richard Waters in the Financial Times. The search giant, which will now escape criminal charges, admitted that though it had known that the pharmacies were selling unlicensed drugs, it allowed them to run ads on Google. The half-billion-dollar payment is roughly equivalent to Google’s advertising revenue on the drug ads between 2003 and 2009, plus what the pharmacies earned on sales to U.S. customers.

Banks: Buffett bets $5 billion on Bank of America

Struggling Bank of America has received a $5 billion cash infusion from billionaire investor Warren Buffett, said Dan Fitzpatrick in The Wall Street Journal. In exchange for the investment, Buffett receives preferred stock that pays a 6 percent annual dividend, as well as the right to buy more stock at a low price over the next decade. BofA CEO Brian Moynihan called the investment “a strong endorsement in our vision and our strategy.” The biggest U.S. bank, which is still staggering under the weight of bad mortgage deals, posted $8.8 billion in losses last quarter and recently announced 3,500 layoffs.

Greece: European Union debt deal looks shaky

A European deal negotiated in July for a second Greek bailout could collapse, said Patrick Allen in CNBC.com. Finland, a small contributor to the EU’s bailout fund, demanded collateral from Greece in exchange for aid. That prompted countries such as the Netherlands and Austria to demand similar deals, putting the bailout package at risk. Greece has said it will walk away from a debt-swap agreement unless 90 percent of its private creditors sign up; only about 60 percent have so far. As the bickering continues, Greece’s borrowing costs are soaring.

Oil: Exxon strikes Arctic oil agreement with Russia

ExxonMobil has signed a deal with Rosneft, Russia’s state-owned oil company, for joint Arctic oil exploration, said Elizabeth Souder in DallasNews.com. The companies will spend $3.2 billion exploring the Kara Sea, north of Russia, and other sites. Rosneft will also gain access to Exxon’s drilling technologies. Russian Prime Minister Vladimir Putin said the deal could lead to total investments of $500 billion.