Mexico's economy grows 1.7%

Mexico economy grows

Mexico's economy grew a modest 1.7% in the third quarter but was only mildly affected by turmoil in the world financial markets, the Finance Ministry said.

Employment rates, productivity and public spending "continue to grow in Mexico, albeit at more moderate annual rates than those observed in previous quarters," the ministry said.

Mexico, whose economy depends heavily on the United States, has revised its 2008 economic growth outlook to 2% from 2.4%. The government lowered its 2009 growth forecast from 3% to 1.8%. But Wednesday, Central Bank President Guillermo Ortiz said he expected growth next year of only 0.5% to 1.5%.

BANKING

Barclays gets aid from Middle East

Middle Eastern investors will pump as much as $12 billion into Barclays, allowing the bank to strengthen its balance sheet without a bailout by the British government.

The move underscores Barclays' determination to retain its commercial independence, coming just weeks after peers agreed to stringent conditions to borrow taxpayer funds.

The Qatar Investment Authority, the Challenger investment vehicle led by the Qatari royal family, and Sheik Mansour bin Zayed al Nahyan of the Abu Dhabi royal family could end up owning almost a third of the bank as a result of the deal.

Florida bank is closed down

Freedom Bank of Bradenton, Fla., was closed by regulators, the 17th U.S. bank seized this year as the deepest housing slump since the Great Depression triggers record foreclosures and mounting losses.

Freedom, with $287 million in assets and $254 million in deposits, was shut by the Florida Office of Financial Regulation, and the Federal Deposit Insurance Corp. was named receiver. The FDIC said Fifth Third Bancorp of Cincinnati would assume all the deposits -- about $250 million -- and buy $36 million of the assets.

CREDIT CARDS

American Express in U.S. probe

American Express Co. said the U.S. Justice Department had asked for documents related to policies that deter merchants from discriminating against its card.

The company received the request from the Justice Department's antitrust division on Oct. 10, New York-based American Express said in a regulatory filing.

The company "intends to cooperate" with a civil probe involving merchant surcharges, and the query doesn't mean laws were broken, American Express said.

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