PRESS DIGEST - Wall Street Journal - July 23

July 23 (Reuters) - The following were the top stories in The Wall Street Journal on Wednesday. Reuters has not verified these stories and does not vouch for their accuracy.

* House and Senate leaders have largely hammered out a compromise deal on a mammoth housing package that would permit the government to bolster Fannie Mae FNM.N and Freddie Mac FRE.N in an emergency, overhaul supervision of the housing-finance giants and allow the government to insure up to $300 billion in refinanced mortgages.

* Five of the largest U.S. financial institutions, led by Wachovia Corp WB.N and Washington Mutual Inc (WM.N), reported combined quarterly losses of more than $11 billion. But their shares jumped an average of 14 percent on rising hopes that battered bank stocks have fallen about as low as they can go.

* Struggling banks are still trying to raise capital and some of the hardest hit are considering selling their lucrative money-management units.

* As lenders curtail their real-estate exposure, they are triggering lawsuits from builders that say the banks have unfairly cut off their construction financing and forced their companies to the brink of bankruptcy.

* Zynga Game Network, which makes free poker, puzzle and other games for social-networking Web sites, has attracted backing from heavyweight investor Kleiner Perkins Caufield & Byers.

* Mortgage rates are nearing their highest levels in a year, adding to pressures on the weakened housing market.

* The House passed legislation that would overhaul the Federal Aviation Administration's approach to airline safety, following disclosures of lax oversight by agency inspectors.

* Britain's Financial Services Authority unveiled a proposal to allow financial institutions to receive emergency loans from a central bank without immediately disclosing them to investors.

* Nissan Motor Co's (7201.T) CEO said in an interview that the industry is entering a global slowdown that could spur more alliances. While declines in the U.S. have been a main trouble spot for the industry, European auto sales are treading down.

* New York state Attorney General Andrew Cuomo is making preparations to file civil securities-fraud charges against UBS (UBSN.VX), the first of several cases that could grow out of New York's investigations into the auction-rate-securities market.

* Yahoo Inc's (YHOO.O) slump continued during the second quarter, as profit fell 18 percent, and the company delivered revenue growth on the lower end of its expectations.