PRESS DIGEST- New York Times business news - March 27

March 27 Thu Mar 27, 2014 2:16am EDT

March 27 (Reuters) - The following are the top stories on the New York Times business pages. Reuters has not verified these stories and does not vouch for their accuracy.

* The Federal Reserve dealt an embarrassing blow to Citigroup Inc on Wednesday when it rejected the company's plans to manage its capital, citing concerns about the "overall reliability of Citigroup's capital planning process." It was the only one among the top five banks that failed to persuade the Fed to bless its plans of increasing dividends and repurchasing stock. (r.reuters.com/cub97v)

* Rupert Murdoch appointed his two sons, Lachlan and James to senior positions at his companies News Corp and Twenty-first Century Fox, ensuring that a media conglomerate that has always been run like a small family business would have a Murdoch in charge for years to come.(r.reuters.com/mub97v)

* Children of elderly borrowers are learning that their parents' reverse mortgages are now threatening their own inheritances. Under federal rules, survivors are supposed to be offered the option to settle the loan for a percentage of the full amount. Instead, reverse mortgage companies are increasingly threatening to foreclose unless heirs pay the mortgages in full. (r.reuters.com/pub97v)

* Bank of America Corp is paying $6.3 billion to settle a lawsuit arising out of troubled mortgage-backed securities it sold to Fannie Mae and Freddie Mac in the run up to the financial crisis. As part of the settlement, Bank of America will also repurchase mortgage securities from Fannie and Freddie that are valued at about $3.2 billion. (r.reuters.com/rub97v)

* Candy Crush Saga-developer King Digital Entertainment saw its stock slump as trade opened on Wednesday, and ended the day down 15.6 percent, closing at $19 per share. The sheer drop disappointed investors who scooped up the stock at the initial public offering, as well as those who bought shares Wednesday morning. (r.reuters.com/tub97v)

* In the fifth huge recall for automakers this year, Nissan Motor Co Ltd is recalling nearly a million vehicles because the front passenger-side air bag might not deploy in a crash, the company said in a report to regulators published on Wednesday. (r.reuters.com/byb97v)

* A growing number of big corporate clients are demanding that their law firms demonstrate that their computer systems are employing top-tier technologies to detect and deter attacks from hackers bent on getting their hands on corporate secrets either for their own use or sale to others. (r.reuters.com/vub97v)

* Yet another proposal to overhaul United States' housing finance system will be put before Congress on Thursday. The major distinction of this proposal is that it would make the mortgage lending system more like a public utility, by creating a co-op of lenders that would be the sole issuer of mortgage-backed securities guaranteed by the government. (r.reuters.com/wub97v)

* Two Democratic senators on Wednesday criticized Target Corp's management for not stopping a huge data breach of its systems, citing several missed opportunities to thwart the attack and protect customer data. John D. Rockefeller from West Virginia, chairman of the Senate Commerce Committee, and Richard Blumenthal from Connecticut said Target's failure to heed warning signs of incursions by cyber criminals ultimately was the fault of its top executives. (r.reuters.com/xub97v)

* Connecticut lawmakers on Wednesday became the first in the country to pass legislation that would increase a state's minimum wage to $10.10 an hour by 2017, the same rate President Obama wants for the federal minimum wage. (r.reuters.com/zub97v) (Compiled by Ankush Sharma in Bangalore)

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