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Federal aviation regulators slapped American Airlines on Thursday with the largest fine in history, charging that the carrier made thousands of unsafe flights.

The Federal Aviation Administration said it has "proposed" a $24.2 million civil penalty for American Airlines’ failure to properly inspect wire bundles in the wheel wells of its MD-80 aircraft. The incident snarled thousands of flights in 2008.

The airline, owned by AMR Corp., (AMR, Fortune 500) did not follow the guidelines in the so-called 2006 Airworthiness Directive, which was intended to prevent wires from shorting, which could cause a loss of power and possibly a fire, the FAA said.

The airline’s stock price is down 1.7%.

The FAA inspections resulted in the grounding of about 1,000 American Airlines flights in early April, 2008, after the FAA found that the airline did not properly inspect two of its airplanes.

As part of that inspection, the FAA determined that the airline operated 286 of its MD-80s on a total of 14,278 flights "while the aircraft were not in compliance with federal regulations cheap business cards."

FAA spokesman Lynn Lunsford said the fine is considered a proposal as a legal formality, because the airline has 30 days to respond and has the option of negotiating a smaller fine.

"There was never a flight safety issue," American Airlines spokesman Tim Smith told CNNMoney.com in an email.

"These events happened more than two years ago and we believe this action is unwarranted," he said. "We will challenge any proposed civil penalty. We are confident we have a strong case and the facts will bear this out."

Lunsford said that Southwest Airlines (LUV, Fortune 500) had previously been the recipient of the biggest FAA fine — of $10.2 million — which it was able to negotiate down to $7.5 million. 

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For the second month in a row, the U.S. economy shed jobs as the government continued to unload census workers, offsetting disappointing gains in private business hiring.

The Labor Department on Friday reported a net loss of 131,000 jobs in July, an improvement from the revised loss of 221,000 jobs in June.

The loss was due mostly to the end of 143,000 temporary census jobs in the month, but hiring by businesses was also weak, as those employers added only 71,000 jobs in July.

"The job market has lost steam and remains lethargic," said Sung Won Sohn, economics professor at Cal State University Channel Islands.

Businesses have now added jobs in every month so far this year, a total of 630,000 positions. But that works out to an anemic 90,000 a month. There needs to be an overall gain of about 150,000 jobs per month just to keep pace with population growth.

And private sector job growth seems to be losing ground. The modest gain of 71,000 jobs in business hiring was up from even weaker revised readings for May and June, but was still well below the nearly 200,000 monthly gains in March and April, when the labor market appeared set to turn the corner.

"The private sector is just not strong enough," said Tig Gilliam, CEO of Adecco Group North America, a unit of the world’s largest employment staffing firm. "Companies are still cautious on the hiring front. They’re taking a long time to make decisions. All of that suggests continued uncertainty and slow improvement."

The overall number was worse than the loss of 87,000 jobs that economists surveyed by Briefing.com had predicted.

More pain ahead

The job losses from census jobs ending are likely to abate in the coming months. There are only 196,000 temporary census workers still on the job and they’ll be phased out mostly over the next two months.

But the outlook for private sector hiring remains weak. A restocking in inventories that helped lift hiring earlier this year has mostly come to an end and retailers are likely to keep shelves and staff lean going into an uncertain holiday shopping period.

Temporary workers, often taken as a leading indicator of future hiring by businesses who use them ahead of expanding their permanent staff, has been trending down for the last nine months and fell to a loss of 5,600 jobs this month, the first decline in that reading since September payday loans.

Public sector job losses weren’t limited to temporary jobs, as government jobs outside of census fell by 59,000 in the month, most being cut from state and local governments facing budget problems.

The Obama administration said the loss of state and local government jobs, and the weak private sector hiring, show that more needs to be done.

"We have made substantial progress from the days when employment was declining by 750,000 a month," said a statement from Council of Economic Advisers Chair Christina Romer. "But, today’s employment report emphasizes just how important the additional jobs measures before Congress are."

But Republicans claim the weak employment report showed that the economic policies of the Obama administration have failed.

"For all of the effort being expended to convince Americans that their policies have ‘funded’ or ‘created and saved’ new jobs, the sobering reality is 18 months after the stimulus was signed into law, our economy is still hemorrhaging jobs," said Rep. Darrell Issa, R-Calif.

Unemployment persists

The unemployment rate remained unchanged at 9.5% in June. Economists had expected the jobless rate to edge up to 9.6%. But that was mostly because of 381,000 workers who stopped looking for work in recent weeks, and were therefore no longer counted as part of the labor force.

That jump in discouraged workers may have been partly due to the loss of extended unemployment benefits for many jobless during the month. Without the incentive of having to look for work to collect benefits, many workers simply gave up looking.

The percentage of the population with jobs fell for the third straight month to 58.4% and is now approaching the 26-year low in that reading reached in December.

There was some good news buried in the report, at least for those with jobs. The average hourly work week increased 0.1 hours to 33.5, suggesting that workers who had their hours reduced were being called back to work full time. The number of part-time workers who would prefer to work full time fell by 98,000 to 8.5 million. 

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Maintenance & More Automotive Specialists has expanded to a second location on Albuquerque’s Westside.

The company opened a new site at 3301 Coors Blvd. NW in the Ladera Shopping Center. The company hired seven new employees from the former Richard’s Automotive to staff the site.

Owner Scott Chazdon, said exceptional service has helped the business grow, even in a down economy.

“We look forward to implementing the same customer-oriented practices there as in the original facility at 135 Wyoming NE,” he said.

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Menlo Park-based Pacific Biosciences has completed a $109 million round of Series F financing.

The round includes a $50 million investment from San Diego-based Gen-Probe Inc., a maker of molecular diagnostic products and services.

Pacific Biosciences, which is developing technology for real-time detection of biological events, said it will use the new funds to support operations as the company ramps up production capabilities for the commercial launch of its PacBio RS system no fax payday loans.

The company has raised approximately $370 million in capital to date.

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As public outrage over Wall Street bonuses fades a bit in the United States, the European Parliament on Wednesday approved tough new rules that limit bankers’ bonuses and align compensation with long-term financial performance.

The new rules are more rigid than any steps the U.S. has taken to regulate pay practices within the financial industry and highlights a growing divide between U.S. and E.U. policy on this key issue.

Under the new rules, upfront cash bonuses to European bankers will be capped at 30% of the total bonus, and 20% for "particularly large" bonuses. The rules also require that up to 60% of any bonus be deferred for at least three years and allow for part of it to be recovered if investments underperform. At least half must be paid in "contingent capital" and shares.

The rules are subject to a vote by the European Council and would go into effect next year. They would apply to U.S. banks based in Europe as well.

"These tough new rules on bonuses will transform the bonus culture and end incentives for excessive risk taking," said Arlene McCarthy, a British member of the European Parliament who championed the rules. "Since banks have failed to reform we are doing it for them."

By contrast, the financial reform bill passed by the House last month does not contain provisions that would cap bankers’ bonuses. President Obama is expected to sign the bill into law this month assuming it also passes in the Senate.

The bill does require industry regulators to draft their own set of rules aimed at eliminating risky pay practice among banks and other financial firms. The Federal Reserve, in conjunction with other regulators, has already issued guidance along those lines.

In addition, the bill would impose new rules for how all publicly-traded companies pay top executives. Shareholders will be given a nonbinding advisory vote on how top executives are paid while in office. Shareholders also get a nonbinding advisory vote on executives’ outsized severance payments, or so-called "golden parachutes."

Critics say more needs to be done to limit the size of Wall Street bonuses, arguing that skewed compensation practices helped bring on the financial crisis pay day advance.

"The problem isn’t only how pay is structured," said Sara Anderson, an executive compensation expert at the Institute for Policy Studies. "It’s the size of pay that is still an issue."

Scott Talbott, head lobbyist for the Financial Services Round Table, supported steps to limit excessive risk taking, but said imposing uniform caps on bonuses across the industry is a mistake.

"Placing a hard cap on compensation is the wrong approach. The problem is that each employee and each company is different," he said. "One size doesn’t fit all. U.S. policymakers are right on this."

He added that many financial services companies in the United States and abroad have already taken steps to ensure that compensation practices are aligned with the interests of customers and shareholders.

Still, the piecemeal approach to regulating Wall Street bonuses in the United States is surprising given the wave of public anger that developed in the wake of the financial crisis.

The issue came to a head in March 2009 after AIG (AIG, Fortune 500) paid employees a total of $165 million in bonuses despite the fact that the giant insurance company had to be bailed out by taxpayers.

But the groundswell of anger and frustration gave way to a sense of "disempowerment" as the debate over Wall Street reform dragged on, Anderson said.

In addition, the health care reform bill and the massive oil spill in the Gulf of Mexico has also diverted some public rage from the financial services sector.

That could change, Anderson said, as the economic recovery falters and the gap between rich and poor Americans continues to widen.

"With the increasing disconnect between the people at the bottom and the people at the top, the public outrage factor could increase," she said. 

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Financial shares rallied Friday on relief that the new version of the Wall Street reform bill is less restrictive than had been expected, but the broader market was mixed at the end of a down week on Wall Street.

Dow Jones industrial average (INDU) lost 9 points or 0.1%. The S&P 500 (SPX) gained 3 points or 0.3% and the Nasdaq (COMP) composite gained 6 points or 0.3%.

Stocks seesawed in the morning after economic growth in the first quarter was revised lower. Initially, investors showed little reaction to the news that lawmakers in the House and the Senate finalized negotiations on the most sweeping financial reform since the New Deal. But as the session wore on, the tone improved and the rally in bank shares spread to the broader market.

However, markets turned mixed near the close and trading volume amped up amid the impact of the annual rebalancing of the the Russell indexes. They include the Russell 1000 index of the largest American companies and the Russell 200 index of smaller companies.

Banks, techs, drugmakers and energy shares were among the gainers on the day, but some of the consumer product names stumbled, leaving markets mixed on the session. Blackberry maker Research in Motion (RIMM) lost nearly 11% in very active trading after it reported a rise in fiscal first-quarter revenue and earnings that disappointed investors on the revenue side.

Stocks lost ground this week after a two-week advance, as economic worries resurfaced after a brief reprieve. The market has been firmly in "correction" mode - down at least 10% from the highs - for over a month now.

The recent attempt to erase those losses petered out this week amid worse-than-expected reports on housing, manufacturing and on Friday, GDP.

GDP: Economic growth in the first three months of the year progressed at a slower pace than originally reported, the government said Friday, with consumers spending less than originally thought.

GDP grew at a 2.7% annualized rate in the first quarter versus the previously reported 3%. Economists surveyed by Briefing.com thought growth would hold steady at 3%.

In other economic news, the University of Michigan’s final consumer sentiment index for June was revised up to 76 from the previous reading of 75.5. Economists thought it would hold steady, on average. The index stood at 73.6 in May.

Wall Street reform: After two weeks of negotiations following a year of work, lawmakers in Washington have combined two versions of a reform bill that will overhaul the financial system. The final bill won’t be passed for a few days payday loans.

Proposed in the wake of the financial market meltdown, the bill’s highlights include: the establishment of a consumer protection agency inside the Federal Reserve; mortgage help for the jobless; and the establishment of a council to look out for problems at major banks and throughout the financial system.

While most of the stock market was flat to lower, the financial sector rallied on relief that the part of the bill that regulates trading was not as strident as some had feared.

The government would be given the ability to regulate derivatives - complex securities that were used by speculators in a way that contributed to the collapse of the housing market. But the regulations are looser than initially proposed. Also, the government will be able to limit, but not stop, banks from making trades on their own accounts.

Financial shares rallied, with the KBW Bank (BKX) sector index adding 2.9%. Components Bank of America (BAC, Fortune 500), JPMorgan Chase (JPM, Fortune 500), Comerica (CMA) and PNC Financial Services Group (PNC, Fortune 500) were among the gainers.

Currency: The euro inched higher versus the dollar but remained well above the four-year low of $1.188 hit last week. The dollar was down 0.3% versus the yen. The direction of the euro and the state of global debt are expected to be in focus at this weekend’s G-20 meeting.

World markets: European markets slipped. Britain’s FTSE 100 lost 1%, Germany’s DAX gave back 0.7% and France’s CAC 40 fell 1%.

Asian markets slipped. Japan’s Nikkei fell 1.9%, Hong Kong’s Hang Seng fell 0.2% and China’s Shanghai Composite lost 0.5%.

Commodities: U.S. light crude oil for August delivery rose $2.11 to $78.62 a barrel on the New York Mercantile Exchange.

COMEX gold for August delivery gained $10.60 to $1,256.70 an ounce after closing at a record $1,258.30 last Friday.

Bonds: Treasury prices rallied, lowering the yield on the 10-year note to 3.11% from 3.12% late Thursday. Treasury prices and yields move in opposite directions.

Market breadth: Market breadth was positive and volume was robust because of the rebalancing. On the New York Stock Exchange, winners beat losers seven to three on volume of 2.56 billion shares. On the Nasdaq, advancers topped decliners two to one on volume of 5.14 billion shares. 

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Chrysler Group is recalling about 285,000 model year 2008 and 2009 Dodge Caravan and Chrysler Town & Country cars in the U.S. because of possible fire hazards.

The National Highway Safety Administration said some of the vehicles, manufactured between February and September 2007, may have been built with "an improperly routed wire harness" that could short circuit and ultimately cause a fire.

"The company is not aware of any accidents or injuries related to this issue," said a company spokesman in a statement. Chrysler said it was conducting a voluntary safety recall for the vehicles "to inspect the sliding-door wire-track assembly for damage and repair or replace as necessary."

The recall marks the second one for Chrysler this month. Last week, the automaker recalled about 25,000 Dodge Caliber and Jeep Compass cars in the U.S. because of a problem that causes the gas pedals to stick. An additional 10,000 cars were being recalled in other countries.

Earlier this year, the automaker recalled more than 300,000 model year 2005-2006 Dodge Caravan, Grand Caravan and Chrysler Town & Country vehicles over front crash sensors that could cause air bag malfunctions during a crash. That recall pertained to vehicles in 29 states and the District of Columbia.

Chrysler will notify owners of vehicles affected by the recall. Dealers will inspect and, if needed, fix the vehicles for free. Owners who think their car may be involved can call Chrysler at 1-800-853-1403 or NHTSA at 1-888-327-4236. 

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Consumer prices fell in April for the first time in 13 months, giving the Federal Reserve more room to keep interest rates at historic lows to aid the economy. That’s good news for borrowers, but not for savers.

Record-low rates help borrowers who qualify for loans and want to take on more debt. The prime lending rate, used to set rates on some credit cards and consumer loans, is at its lowest point in decades.

But low rates hurt savers. They’re especially hard for people on fixed incomes who earn scant returns on their savings.

The 0.1 percent decrease in overall prices last month was pulled down by gas prices, which are expected to drop further this summer.

Core inflation, which excludes volatile food and energy prices, was flat in April, according to the Labor Department report Wednesday. Over the past 12 months, core inflation has risen just 0.9 percent — the smallest increase in 44 years.

The recession in 2007 and 2008 has kept inflation so low that some economists worry about the possibility of deflation — a destabilizing period of falling prices and wages.

"With the unemployment rate so close to 10 percent, it is entirely understandable that the Fed wants to stick with its commitment to leave rates at near-zero," said Paul Ashworth, senior U.S. economist at Capital Economics.

Ashworth said he thought the Fed wouldn’t start raising rates until late next year — and potentially not until 2012.

Economists had expected overall prices and core prices to edge up 0.1 percent in April. The drop in overall prices was the first decline since a similar dip in March 2009.

Energy prices fell 1.4 percent, the biggest one-month decline since March 2009. Gasoline prices dropped 2.4 percent. Analysts said they expect further declines in coming months as crude oil prices are down nearly 20 percent since April.

Food costs rose 0.2 percent, the same increase posted in March. Economists had expected a bigger increase because of a winter freeze on Florida vegetable and citrus crops.

Clothing costs dropped by 0.7 percent in April. The cost of new vehicles was unchanged. Airline tickets rose by 2.2 percent, one of the few areas to show price pressures last month.

Joel Naroff, president of Naroff Economic Advisors, said stable prices had allowed consumers to spend more freely despite slow growth in income and high unemployment. He said most businesses were "dealing with a sluggish economy and that means they have very little pricing power."

Inflation at such low levels raises concerns of deflation. But most economists believe that threat remains remote. The overall economy has begun growing again, and hiring is starting to pick up.

The U.S. has not had to battle deflation since the 1930s.

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The Big 12 Conference — which includes the University of Colorado at Boulder — and the Pacific-10 Conference have had preliminary talks about a TV alliance and football scheduling partnerships, according to news reports.

The Pac-10 includes several universities in California, Oregon, Washington and Arizona. It does not want to merge with the Big 12, according to the Dallas Morning News, but an alliance of the two conferences could boost their negotiating power regarding broadcast deals.

The Big 12 has football TV contracts with ABC/ESPN through 2016 and with FSN through 2012, according to the Kansas City Star newspaper. The Pac-10 has deals with ABC/ESPN and FSN through 2012.

The Pacific-10, under new Commissioner Larry Scott, seeks to boost the $96 million it raised last year from broadcast rights and other operations. That trails all but one of the major collegiate conferences.

The Big 12 posted almost $130 million last year from its broadcast and other revenue-generating efforts.

Besides CU-Boulder, the Big 12 includes Baylor University, Iowa State University, Kansas State University, the University of Kansas, the University of Missouri, the University of Nebraska, Oklahoma State University, the University of Oklahoma, Texas A&M, Texas Tech University, and the University of Texas pay day loan lenders.

Pac-10 members are the University of Arizona; Arizona State University; the University of California, Berkeley; the University of California, Los Angeles; the University of Oregon; Oregon State University; the University of Southern California; Stanford University; the University of Washington; and Washington State University.

There have been reports in recent months suggesting the possibility that CU-Boulder and the University of Utah might join the Pac-10, but neither school has publicly indicated any plans to do so.

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Market watchers are keeping an eye on Thursday's expected initial public offering of biofuel maker Codexis Inc. to gauge Wall Street's appetite for other big cleantech IPOs coming this year.

The Redwood City company plans to raise up to $90 million in its second try at going public after its first attempt was withdrawn amidst the market turmoil of the fall of 2008.

Waiting in the wings are Fremont-based solar panel maker Solyndra Inc.'s expected $300 million IPO and Palo Alto electric car maker Tesla Motors Inc.'s $100 million offering. Emeryville biofuels company Amyris Biotechnologies Inc. said Friday that it plans to raise up to $100 million in an initial public offering.

Another expected offering this year is from Redwood City-based electric grid company Silver Spring Networks Inc., but that one hasn't been filed yet.

Codexis set the terms of its IPO on March 31 at 6 million shares to sell for between $13 and $15 a share, giving it a market capitalization of up to $509 million.

The company was founded in 2002 as a subsidiary of Redwood City-based Maxygen Inc. (NASDAQ:MAXY).

In addition to biofuels, its biocatalysts can be used by pharmaceutical companies to boost manufacturing and commercialization. Its customers include Merck & Co. (NYSE:MRK), Pfizer Inc. (NYSE:PFE), Royal Dutch Shell Plc., Chevron Corp. (NYSE:CVX) and General Electric Co. (NYSE:GE).

It posted a $20 million loss in 2009 despite a 64 percent rise in revenue to $83 million.

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