PRESS DIGEST - Wall Street Journal - Aug 7

Aug 7 (Reuters) - The following were the top stories in The Wall Street Journal on Friday. Reuters has not verified these stories and does not vouch for their accuracy.

* Credit Suisse's (CSGN.VX) plan to pay bankers with a brew of its own toxic bonds and mortgages has had an unexpectedly strong start, which could put further pressure on other Wall Street firms to change how they pay their employees.

* The U.S. Senate passed by a 60-37 vote a proposal to add $2 billion to the "cash for clunkers" program, as major auto makers weighed whether to increase production to restock dealer lots.

* Maurice "Hank" Greenberg, the former head of American International Group Inc (AIG.N) in a rare concession agreed to pay $15 million to settle a securities-violation allegation arising from the giant insurer's past accounting improprieties.

* The U.K. central bank expanded its bond-buying program by $85 billion, signaling doubts about sustaining recent economic improvements.

* Keith Banks, the Bank of America Corp (BAC.N) executive in charge of private-banking unit U.S. Trust and asset manager Columbia Management, cast doubt on his future at the bank by telling employees earlier this week that he will stay in his current job for an undetermined transitional period.

* U.S. retailers endured another tough month in July -- the worst since January -- as weaker consumer spending signaled a tough time for back-to-school sales, the second-biggest retail season after Christmas.

* CBS Corp (CBS.N) saw its profit all but wiped out in the second quarter, as the recession continued to eat into advertising revenue across its businesses. But the slim gain was an improvement over the prior quarter's loss, and executives offered a rosier outlook for the rest of the year.

* Nasdaq OMX Group Inc (NDAQ.O) and BATS Exchange Inc said both exchange operators will stop offering "flash" order types on Sept. 1 as controversy around the practice continues to build.

* Allenberg Cotton Co, the world's largest cotton trading company by volume and revenue, is in merger talks with rival Dunavant Enterprises Inc amid a volatile global cotton market and tumultuous economic conditions.

* The number of U.S. workers filing new claims for state jobless benefits fell last week, providing another glimmer of hope that the economy may be on the road to recovery. * A powerful U.S. House Democrat who has turned down a Republican's call to subpoena records of a mortgage program at Countrywide Financial Corp received two home loans from the lender.

* Elan Corp (ELN.I) asked a federal judge to intervene in its dispute with marketing partner Biogen Idec (BIIB.O) over the multiple sclerosis medicine Tysabri.

* The U.S. Congress plans to spend $550 million to buy eight jets, even as lawmakers have criticized firms receiving taxpayer funds for using private jets.

* The International Monetary Fund welcomed recent steps by the Greek government to increase tax revenue, but said "significant" further steps will be needed to cut the budget deficit over the longer term.

* Multiple Internet sites, including popular hangouts Twitter and Facebook, were temporarily disrupted after they were struck by apparently coordinated computer attacks.

* Unilever's (ULVR.L) (UNc.AS) new CEO fulfilled his promise to quickly fire up sales volumes at the consumer giant, delivering a second-quarter performance that surpassed analysts' forecasts for sales growth.

* Sirius XM Radio Inc's (SIRI.O) second-quarter loss widened as the satellite-radio company reported $132 million in charges, while its subscriber count slipped and churn rose slightly.