Media Digest 10/21/2008 Reuters, WSJ, NYTimes, FT, Bloomberg

According to Reuters, the economy contracted in the third quarter as consumer spending dropped sharply.

Reuters writes that Fidelity Magellan Fund bought shares in big banks in September including Bank of America (BAC) and JP Morgan (JPM).

Reuters reports that a merger between GM (GM) and Chrysler may die because the administration will not provide funding.

Reuters reports that GMAC may convert to a commercial bank to overhaul its huge debt.

Reuters writes that Lehman investors are suing management for misleading them.

Reuters reports that a legal decision may cut down the use of "business method" patents.

Reuters reports that Japan’s central bank cut rates and Europe counterparts are likely to do the same.

The Wall Street Journal writes that financial firms getting federal aid own executives an accumulated $40 billion in compensation as of the end of 2007.

The Wall Street Journal reports that Barclays (BCS) is close to getting $10 billion from Middle East investors.

The Wall Street Journal reports that Toyota (TM) will begin to export US-made vehicles.

The Wall Street Journal writes that Chrysler faces massive job cuts in a deal to merge with GM.

The Wall Street Journal reports that several governors urged the administration to provide financial aid to car companies.

The Wall Street Journal reports that Electronic Arts (ERTS) cut forecasts and 6% of its work force.

The Wall Street Journal reports that the odds of a Yahoo! (YHOO) deal with Google (GOOG) are dropping.

The Wall Street Journal reports that Sprint (S) will hold onto its NexTel division after failing to get an acceptable bid.

The Wall Street Journal reports that executives at financial firms are in talks to cap their compensation.

The Wall Street Journal reports that turnaround executives are worried that the downturn maybe worse than expected potentially curbing client abilities to pay fees.

The Wall Street Journal reports that Ford (F) will rehire workers to build its new pick-up.

The Wall Street Journal reports that Sun (JAVA) posted a lost of $1.68 billion on a goodwill write-down.

The Wall Street Journal reports that net income at Nintendo rose on strong Wii sales.

The Wall Street Journal reports that more medical groups advised against the danger of GDK’s (GSK) Avandia drug.

The New York Times reports that a plan to cut costs of homeowner mortgages may anger those who are not aided and encourage them to default.

The New York Times reports that Ford officials claim they can survive a downturn without a merger.

The New York Times reports that Russia’s cash reserves have dropped which may hurt its economy.

The New York Times reports that AIG (AIG) will now be eligible for $144 billion in aid, which may not be enough,

Bloomberg reports that Nissan cut sales forecasts.

Douglas A. McIntyre