BONDS

California's bond rating was affirmed by Standard & Poor's after the largest U.S. state borrower sold $5 billion of short-term notes to avert a cash squeeze and announced plans to sell $2 billion more. S&P removed California from its list of borrowers facing possible downgrade and kept the state at A+, the fifth-highest investment grade. The most-populous state intends to sell more notes next month after last week's successful offering helped boost its cash cushion until tax receipts arrive next year.

GLOBAL ECONOMY

Argentina may nationalize funds

Argentine President Cristina Fernandez has signed a bill to nationalize nearly $30 billion in private pension funds in response to a financial crisis.

Fernandez says that while the U.S. and European Union are stepping in to rescue their banks, Argentina must protect retirees whose stocks and bonds are falling because of the global meltdown.

Argentine stocks plunged 11% after word of the announcement leaked.

Opponents say the government is scrambling for cash to prop up falling tax revenue.

The bill needs approval in Congress, where Fernandez's party has a majority.

REAL ESTATE

Wachovia sues home builders

Wachovia Corp. is seeking at least $358 million in a lawsuit against six home builders including KB Home, Toll Bros. Inc. and Lennar Corp. over a failed Nevada development.

Wachovia Bank, a unit of Charlotte, N.C.-based Wachovia, sued in Manhattan federal court. Wachovia said land developer Focus Kyle and eight builders, two of which weren't sued, defaulted on guarantees to develop a planned community in Las Vegas.

The $565-million development was to be called Kyle Canyon Gateway, with 16,000 homes on 1,710 acres, according to Commercial Property News Magazine.

The builders declined to comment or could not be reached.

COURTS

J&J sues Watson over drug patent

Johnson & Johnson filed suit against Watson Pharmaceuticals Inc., alleging infringement of its Ortho Tri-Cyclen LO birth-control pill.

Corona-based Watson submitted an application with the Food and Drug Administration for a pill that would violate the patent, J&J said in a lawsuit filed Thursday in federal court in Newark, N.J. The application seeks to rule J&J's product is either invalid, unenforceable or won't be infringed, J&J said.