PRESS DIGEST- New York Times business news - May 8

Thu May 8, 2014 2:50am EDT

May 8 (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 Department of Transportation said on Wednesday that railroads would be required to notify local emergency responders whenever oil shipments traveled through their states. The order follows a spate of accidents that have raised concerns about the safety of trains that carry increasing amounts of crude oil from the Bakken region of North Dakota across the United States. (r.reuters.com/wam29v)

* Janet L. Yellen, the Federal Reserve chairwoman, told Congress on Wednesday that the economy was growing at a decent rate and that the Fed intended to continue the stimulus campaign that it considered at least partly responsible. The economy, she said, is shaking off a grim winter and the labor market is slowly improving. (r.reuters.com/gem29v)

* Some private investors are betting that reverse mortgages, an investment product aimed at older people in need of cash, will make a resurgence as more homeowners reach retirement age in the coming years. New Jersey-based reverse mortgage start-up Reverse Mortgage Investment Trust has raised about $230 million in a private offering. Investors in the private sale of shares included hedge funds, wealthy individual investors and customers of the investment firm. (r.reuters.com/hem29v)

* One of Goldman Sachs Group's most notable investment vehicles, Petershill, has been less than extraordinary. So when Goldman started a second version of Petershill, which buys stakes in big-name hedge funds, it came as a surprise to people in the industry. Goldman says it is satisfied with the pace of fund-raising, but investors do not appear to be flocking to the new fund as quickly as they did to the first one. (r.reuters.com/jem29v)

* A Democratic member of the Federal Communications Commission called on the agency's Chairman to delay a proposal for new net neutrality rules. Jessica Rosenworcel, one of three Democrats on the five-member commission, said a delay was warranted because of a "torrent of public response" to the idea that the commission's rules might create a fast lane on the Internet for companies willing to pay for it. (r.reuters.com/mem29v)

* Financial Stability Oversight Council in its annual report to the Congress said weaknesses that contributed to the disastrous 2008 financial crisis persist today. The report, released on Wednesday, highlights what it called considerable progress collectively made to improve the strength and resilience of the financial sector. (r.reuters.com/pem29v)

* Bank of America executives and board members faced pointed questions from shareholders on Wednesday about a costly error in the way the bank calculated its financial health. The bank disclosed on April 28 that it had made a significant error in the way it calculates a crucial measure of its financial health. (r.reuters.com/qem29v)

* Tesla Motors Inc reported on Wednesday that it lost $49.8 million in the first quarter as the electric carmaker accelerated the development of its new crossover vehicle and made improvements to its Model S sedan. The company also said California was now in the running for a $5 billion battery factory it plans to build. Previously, the company was considering only Arizona, New Mexico, Texas and Nevada for the factory. (r.reuters.com/rem29v)

* Washington law firm Patton Boggs dropped out of an effort to force Chevron Corp to pay $9.5 billion in an Ecuadorean pollution judgment on Wednesday, expressing regrets for its involvement in the case and agreeing to pay the oil company $15 million in settlement payments. (r.reuters.com/tem29v)

* AOL Inc said that its profit dropped to $9.3 million, or 11 cents per share, from $25.9 million a year earlier. AOL's stock plummeted more than 20 percent after the company reported that, while revenue was up 8 percent in the first quarter, net income fell 64 percent because of restructuring and other charges. (r.reuters.com/vem29v)

* The long-promised potential of offshore wind development along American coastlines took a step toward fruition on Wednesday as the Department of Energy pledged up to $47 million each to three projects it previously supported. The grants are intended to help the projects, off the coasts of New Jersey, Oregon and Virginia, begin delivering electricity by 2017. (r.reuters.com/wem29v) (Compiled by Ankush Sharma in Bangalore)