Tuesday morning headlines

Market edges higher: Health-related issues are up this morning on the bet that the Massachusetts Senate race will kill health care reform. Dow is up about 80 points.

Conan payout: His exit deal from NBC will total almost $40 million and allow him to take another television gig within a year, according to the WSJ.

NBC Universal Chief Executive Jeff Zucker said in an interview that "we were not surprised that Conan was disappointed in having his show back up a half hour. But we were very surprised and disappointed at how nasty it turned."

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"From a financial standpoint this is the right move," Mr. Zucker said of swapping late-night hosts. He said there wouldn't be long-term damage to the brand. "We didn't want to do it, because we wanted to keep Conan. But we're going to be fine, even paying Conan to go away."

Jay's side of the story: He told viewers Monday night about the backstory leading up to this month's fiasco, calling O'Brien "a gentleman and a good family guy." From the LAT:

Leno said that in 2008, NBC was planning to send him into retirement eight months before his contract expired. When he asked to be released, Leno said, NBC refused. "They said, 'We want to keep you here.' . . . They said, 'How about prime-time?' I said, 'That will never work,' " Leno said. But he said top network executives told him: "No, no, we want to put you on at 10. We have done focus groups. People will love you at 10. Look at these studies showing Jay's chin at 10. People will go crazy."

Big loss at Citigroup: Banking giant lost $7.6 billion in the fourth quarter, the result of a large accounting charge tied to the repayment of bailout money. Losses in the mortgages and credit units overwhelmed gains from investment banking. (NYT)

State to ease HMO waits: New regulations will require that patients be treated within 10 business days of requesting an appointment, and by specialists within 15. From the LAT:

The managed healthcare department acted in response to a 2002 law that mandated more timely access to medical care. The law left it to state officials to work out the details, which became subject to protracted negotiations with HMOs, doctors, hospitals, consumer groups and other healthcare activists. In all, it took seven years to finally reach agreement amid intensive talks, bureaucratic hurdles and a lengthy rule-writing process, participants said.

Big meat recall: USDA says it involves 390 tons of ground beef produced by Huntington Meat Packing in Montebello and shipped throughout California from Jan 5 to Jan. 15. A regular safety check found potentially deadly E. coli bacterium. (InjuryBoard.com)

Junk bonds gain favor: Demand for high yields is trumping risk. Last week companies raised $11.7 billion last week in the junk bond market, the biggest in history. Proceeds are generally going toward improving balance sheets by repaying existing debt and pushing back maturities. (WSJ)

Golden Globes score: NBC drew an audience of almost 17 million, up 14 percent from last year. That includes a 10 percent gain in the 18-49 demographic. (LAT)

Lacter on radio: This week's business chat with KPCC's Steve Julian looks at the potential sale of MGM and the opening of two big hotels at L.A. Live. Also at kpcc.org and on podcast.