PRESS DIGEST - New York Times - Nov 11

Nov 11 (Reuters) - The following were the top stories in the New York Times business pages on Tuesday. Reuters has not verified these stories and does not vouch for their accuracy.

* The struggling auto industry was thrust into the middle of a political standoff between the White House and Democrats on Monday as President-elect Barack Obama urged President Bush in a meeting at the White House to support immediate emergency aid.

* American Express Co (AXP.N), the nation's last big independent credit card company, said late Monday that it would transform into a bank holding company to strengthen its position in the market turmoil.

* The American International Group (AIG.N) said on Monday that it lost almost $25 billion in the third quarter and had secured a new $150 billion government assistance package intended to stem the bleeding from its complex financial contracts.

* All the profits, and then some, that Fannie Mae (FNM.P) reaped as home prices soared in recent years vanished in a mere three months, the mortgage giant said on Monday, leaving many analysts wondering where the red ink will end. Fannie Mae lost $29 billion during the third quarter, more than it earned from 2002 to 2006.

* Citigroup Inc (C.N) on Monday joined a growing list of financial institutions offering to modify the terms of mortgages for distressed borrowers, unveiling a program to help thousands meet their monthly payments while reducing the bank's potential for larger losses as the economy erodes.

* A federal investigation into UBS AG (UBSN.VX) concerning its sale of offshore private banking services to wealthy Americans is concentrating on senior and midlevel executives and bankers, and could result in one or more indictments, people briefed on the matter said on Monday.

* Two leading European banks delivered surprises to investors on Monday. One, HSBC Holdings (HSBA.L), reported deeper problems at its American unit, while another, Banco Santander (SAN.MC), reversed course and said it would sell shares to raise more capital.

* Any retailer that was weak before the economic downturn appears likely to end up as one of its victims. The latest example is Circuit City Stores Inc CC.N, one of the nation's largest electronics retailers, which filed for bankruptcy protection on Monday after months of declining sales.

* On Monday, Starbucks Corp (SBUX.O), the global coffee chain, reported net income dropped 97 percent, capping a turbulent year in which the company tried to get ahead of the economic slowdown by closing stores and laying off employees.

* Editors on Monday asked for about 100 volunteers to give up editorial staff jobs at Time, People, Sports Illustrated and a few other Time Inc magazines, and the company announced the elimination of a similar number of jobs in its business operations.

* A new antibiotic being developed by a small San Diego company fared well in a clinical trial, holding promise in treating an intestinal superbug that is commonly spread in hospitals and is becoming more deadly. In the trial, the drug developed by Optimer Pharmaceuticals Inc (OPTR.O) to treat a bacterium, Clostridium difficile, worked better than the only approved drug on the market.