PRESS DIGEST - Wall Street Journal - June 11

June 11 (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.

* Rising interest rates threaten to dim prospects for a housing recovery and choke off a refinance wave that was a major plank of the Obama administration's economic-stimulus efforts.

* Federal Reserve officials harshly criticized Bank of America Corp (BAC.N) and its chief executive in emails after the bank tried to pull out of its deal to buy Merrill Lynch, according to documents unearthed by congressional investigators.

* Mutual funds saw net buying for the 12th week in a row, and money-fund assets fell, as investors' cash continues to flow to riskier realms.

* Chrysler and Fiat (FIA.MI) closed their government-brokered alliance, but the new company faces challenges as it tries to reinvigorate its vehicle lineup and win back consumer confidence.

* The U.S. Federal Reserve made almost $2.7 billion in the first quarter on its myriad lending facilities, asset holdings and loans to Bear Stearns Cos and American International Group Inc (AIG.N), according to data released Wednesday.

* The decline in China's exports and imports steepened in May, while investment growth in the first five months of the year accelerated.

* The Obama administration scrapped the $500,000 salary cap it proposed for executives at firms receiving large amounts of federal assistance but appointed a pay czar to review, reject and even set pay levels -- with no appeal.

* Dell Inc (DELL.O) is cranking up its mergers and acquisitions engine, just as competition for technology deals begins heating up again. Chief Executive Michael Dell expects his company to acquire a "significant-sized company" in coming months, according to a person who has spoken with the CEO.

* A canny trade by a small brokerage firm in two markets at the heart of the financial crisis has left some of the biggest players on Wall Street crying foul. The trade, by Amherst Holdings of Austin, Texas, was particularly galling to the big banks because it turned what they believed was a sure-fire profit into a loss.

* Brazil and Russia are set to unload U.S. Treasury bonds as they acquire $10 billion each of new International Monetary Fund securities designed to bolster the institution's aid programs, officials in the countries said.

* Just days after releasing its latest smart phone, Palm Inc (PALM.O) named a former Apple Inc (AAPL.O) executive that it hired to help turn around the company as its new chief executive.

* A UK antitrust regulator said it will investigate the proposed merger of Ticketmaster Entertainment Inc (TKTM.O) and Live Nation Inc (LYV.N).

* The head of the Federal Aviation Administration said tighter government regulations and tougher industry self-policing are needed to improve commuter airline safety.

* Disclosure statements show many U.S. House lawmakers lost money last year and several held large investments in financial-services firms and auto makers.

* The U.S. Chamber of Commerce said it will spend $100 million in an effort to stem the "rapidly growing influence of government over private-sector activity," in a major new move by the powerful business group to counter the Obama administration's regulatory agenda.