PRESS DIGEST - Wall Street Journal - July 16

July 16 (Reuters) - The following were the top stories in The Wall Street Journal on Thursday. Reuters has not verified these stories and does not vouch for their accuracy.

* CIT Group Inc (CIT.N) said "there is no appreciable likelihood" it will receive government support in the near future, marking the first time since Lehman's collapse that the U.S. has declined to aid a struggling financial firm of significant scope and size.

* Bank of America (BAC.N) is operating under a secret regulatory sanction requiring it to overhaul its board and address other problems or face harsher penalties.

* Some big banks in the U.S. and Britain are offering handsome compensation packages to lure star performers.

* Wal-Mart Stores Inc (WMT.N) will require suppliers to measure and report products' environmental impact as it develops an approach to green labeling.

* Germany warned General Motors Corp GMGMQ.PK that it might withdraw its aid offer if the auto maker sells its European business to anyone other than Magna.

* The former auditor for convicted Ponzi-scheme operator Bernard Madoff appears poised to waive his right to indictment, making it easier for the government to proceed with the case.

* American Airlines parent AMR Corp AMR.N reported a $390 million second-quarter loss as collapsing travel demand continued to erase gains from lower fuel costs.

* Northrop Grumman Corp (NOC.N) expects to keep gaining from shifts in U.S. national-security priorities that are helping the company challenge Boeing Corp (BA.N) as the nation's No. 2 defense contractor.

* A U.S. congressional panel launched to investigate the financial crisis includes a host of well-known business and consumer advocates, setting the stage for a potentially contentious inquiry.

* A federal judge granted class-action status to a consumer lawsuit that accuses a unit of Toys "R" Us Inc. and five manufacturers of conspiring to fix prices on a variety of baby goods, including strollers, high chairs, car seats and breast pumps.

* In a bid to revive support for free trade within the U.S., the Obama administration plans to press foreign nations to increase imports of U.S. agriculture and manufacturing -- but not to push so hard as to ignite a protectionist backlash.

* China's government has turned its economy around far faster than most thought possible, as officials said growth accelerated to 7.9 percent in the second quarter.

* California leaders say they are near a compromise on fixing the state's $26 billion budget shortfall, signaling the end of a weeks-long impasse that has forced officials to issue IOUs to keep the state out of default.

* U.S. Democrats proposed $100 billion in new fees on the health insurance industry as health-care legislation took another step forward in the Senate.

* India selected two sites where U.S. companies can plan to build nuclear-power reactors, a significant step in the two countries' agreement last fall to end a 34-year moratorium on nuclear trade.

* Citigroup Inc (C.N) has been negotiating with the FDIC about entering into a so-called memorandum of understanding that lets the bank work out its problems without the glare of outside attention.

* The latest version of Apple Inc's (AAPL.O) iTunes software blocks rival Palm's PALM.O Pre smart phone from accessing the online store.

* United Steelworkers President Leo Gerard accused General Electric Co (GE.N) Chairman and CEO Jeffrey Immelt of hypocrisy for touting GE's new focus on American manufacturing, saying the company doesn't support "Buy American" policies.