(Reuters) - U.S. regulators should impose even higher capital requirements on large financial firms until they prove they can be wound down if they became insolvent, Federal Deposit Insurance Corp Chairman Sheila Bair said on Thursday. Bair, in prepared testimony for a Senate Banking Committee hearing, said higher capital requirements would have a "relatively modest" effect on the cost of credit and economic activity.

• Read more

(Reuters) - Even in the heart of Sri Lanka's financial capital, convicted hedge fund founder and one-time billionaire Raj Rajaratnam remains a mystery to many on the island of his birth. Found guilty of 14 counts of conspiracy and securities fraud on Wednesday in New York in one of the United States' largest hedge fund insider trading cases, Rajaratnam's fate and infamy in his adopted country has drawn negligible attention in Sri Lanka.

• Read more

(Reuters) - Despite bailouts for Greece, Ireland and Portugal, Europe's debt crisis could still spread to core euro zone countries and the emerging economies of eastern Europe, the International Monetary Fund warned on Thursday. The IMF said it stood ready to provide more aid to Greece if requested, though the country that triggered the sovereign debt crisis in 2009 still had plenty of untapped options for raising extra cash itself through privatizations.

• Read more

(Reuters) - U.S. stocks fell on Wednesday after a three-day rally as Disney results weighed on the Dow industrials and a slide in crude prices hurt energy stocks. Dow component Walt Disney Co (DIS.N) tumbled 4.1 percent to $42.14 a day after its quarterly results missed expectations. U.S. crude futures fell 2.2 percent to $101.60 per barrel, hurting energy shares. The S&P 500 energy sector .GSPE slumped 2 percent and was the top drag on the index.

• Read more

(Reuters) - Galleon Group hedge fund founder Raj Rajaratnam was found guilty on all 14 conspiracy and securities fraud charges of insider trading on Wednesday, in a vindication of the government's aggressive tactics in prosecuting crime on Wall Street. Rajaratnam, a one-time billionaire, will remain free on bail until sentencing on July 29, U.S. District Judge Richard Holwell ruled after the jury delivered its verdict. Rajaratnam was expressionless during the verdict reading by a courtroom deputy.

• Read more

(Reuters) - American International Group and the U.S. Treasury said on Wednesday they will sell just under $9 billion in AIG stock, suggesting the government's exit from its crisis-era investment will be more difficult than originally thought. The $9 billion figure is less than half of what had been contemplated earlier this year. Based on the government's $28.72 break-even point and the government's total shareholding, the Treasury would have to raise just over $47.5 billion in total from AIG share sales to break even.

• Read more

(Reuters) - U.S. exports set a record in March, buoyed by the weak U.S. dollar and strengthening global demand as U.S. trade flows returned to levels last seen before the global financial crisis. U.S. exports grew 4.6 percent in March to $172.7 billion, surpassing the record set in July 2008 before world trade took a sharp downturn. The March export rise was the biggest month-to-month gain in 17 years, the Commerce Department said in a report on Wednesday.

• Read more

(Reuters) - Macy's Inc (M.N) reported a higher quarterly profit and said it expects a continued upswing in sales and profits for the rest of 2011, reflecting the improving fortunes of middle-class shoppers, its core customers. Macy's shares jumped more than 6 percent on the news to their highest level in more than three years. Macy's is benefiting from a years-long effort to offer more exclusive and regionally focused products, which command a higher profit per item and gives the chain more pricing power.

• Read more

(Reuters) - Bank of America Corp (BAC.N) is working to improve profits by reducing its number of problem mortgages and cutting other costs, Chief Executive Brian Moynihan told shareholders on Wednesday. Moynihan, speaking at the company's annual meeting in downtown Charlotte, said the mortgage business of the largest U.S. bank by assets is "still struggling mightily" as it slowly crawls out from under the billions in soured home loans.

• Read more

(Reuters) - Intel Corp (INTC.O) raised its dividend by 16 percent for the third quarter, its second increase in six months, as the world's largest chipmaker expects robust demand for computers in 2011, sending its shares up 2 percent. The company declared a cash dividend of 21 cents, up from its earlier dividend of 18.1 cents. Intel had earlier raised its dividend by 15 percent last November.

• Read more