Boeing test flight uncovers glitch

The first test flight of Boeing’s 777 freighter was affected Monday by a glitch with the electronic recording and transmission of data.

The freighter landed at Paine Field in Everett Monday afternoon, the same airport from which it took off in the morning. The freighter originally was scheduled to land at Boeing Field in south Seattle.

Boeing Co. spokeswoman Sandy Angers said the Federal Aviation Administration requires a test flight to land at the same airport from which it took off when there is an instrument transmission problem.

Detroit

GM to cut jobs, production

General Motors Corp. is expected to cut several thousand salaried jobs and further slash truck production in response to falling U.S. sales and Wall Street’s demands for more action to stem its losses, according to people briefed on the plan.

GM Chairman and CEO Rick Wagoner was scheduled to discuss the changes at a news conference this morning. GM released no further details, but salaried job cuts and cuts to benefits and executive compensation are likely.

The people briefed on the plan say GM will further reduce its truck production to focus more on small cars, and will likely detail plans to raise more cash to fund its restructuring.

Miami

New rules to protect borrowers

The Federal Reserve signed off Monday on a long-anticipated plan to end the abusive lending practices that victimized many borrowers in the now-collapsed subprime market.

The rules, however, will only cover new loans, not existing ones, so they will have little effect on the rising tide of mortgage delinquencies and foreclosures across the country. The rules don’t go into effect until Oct. 1, 2009.

Among the key changes, the rules bar lenders from making loans without proof of a borrower’s income, and require lenders to ensure risky borrowers have reserved money to pay for taxes and insurance. The plan prevents lenders from making a loan without considering a borrower’s ability to repay a home loan from sources other than the home’s value.

From wire reports