PRESS DIGEST - New York Times business news - June 2

June 2 (Reuters) - The following were the top stories in the New York Times business pages on Wednesday. Reuters has not verified these stories and does not vouch for their accuracy.

* As it investigates a suspected kickback scheme in New York's pension system, the Securities and Exchange Commission has been pushing to bar Steven Rattner, a prominent financier and former adviser to the Obama administration on the auto industry, from working in the securities industry for up to three years, according to three people told of the discussions.

* The strike that has crippled production at Honda Motor's (7267.T) factories in China has come as a wake-up call to Japan's flagship exporters as they seek to remain competitive and push into China's burgeoning market with the help of low-wage workers.

* Walt Disney Co (DIS.N) has created what it believes is a first-of-its-kind application allowing Facebook users to buy tickets to "Toy Story 3" without leaving the social networking site and while, at the same time, prodding their friends to come along.

* The American International Group Inc (AIG.N) scuttled the deal to sell its huge Asian life insurance arm to Prudential Plc (PRU.L) of Britain for about $35 billion, in a major setback to repaying the government for its 2008 rescue.

* The Obama administration said Tuesday that it had begun civil and criminal investigations into the massive oil spill in the Gulf of Mexico, as the deepening crisis threatened to define President Obama's second year in office.

* Altria Group (MO.N), the nation's largest tobacco company, announced on Tuesday that it would pay $971 million to resolve a tax dispute concerning leasing transactions in the years 2000 through 2003.

* The Foxconn Technology Group, a giant contract electronics manufacturer that experienced a series of worker suicides, said it would raise salaries by at least 30 percent, more than previously indicated.

* Hewlett-Packard Co (HPQ.N) announced Tuesday that it would cut 9,000 jobs and take a charge of about $1 billion over several years, as it consolidates and automates data centers.

* Citigroup Inc (C.N) is closing 330 branches of its consumer finance business as part of an overhaul aimed at finding a buyer for the unit, the bank said on Tuesday.

* In a tentative and qualified move, the Bank of Canada increased its benchmark lending rate on Tuesday for the first time since July 2007.

* The Food and Drug Administration on Tuesday approved the sale of Amgen's (AMGN.O) osteoporosis drug Prolia to help prevent fractures in postmenopausal women. Last week, the medicine received European approval.

* Portugal Telecom (PTC.LS) said on Tuesday that Telefonica (TEF.MC) had raised its bid for a venture that controls Brazil's largest wireless operator to about 6.5 billion euros ($7.99 billion).

* A federal judge said Tuesday that it was unfair to hold Moody's Investors Service and Standard & Poor's liable as underwriters on securities offerings that required their ratings.