Wednesday morning headlines

Bernanke on rates: Fed chairman tells Congress that the still-sluggish economy would require short-term interest rates to remain low for "an extended period." Dow is up about 70 points. (NYT)

Still sorry: Akio Toyoda, also testifying this morning on Capitol Hill, says that Toyota grew too fast to keep up with safety controls. Keep in mind that Japanese CEOs rarely get into day-to-day decision-making. From AP:

"We pursued growth over the speed at which we were able to develop our people and our organization," Toyoda said in testimony prepared for delivery Wednesday. "I regret that this has resulted in the safety issues described in the recalls we face today, and I am deeply sorry for any accidents that Toyota drivers have experienced."

Pick-up in Jumbo loans: Rates are declining and interest rates are dropping, a very big deal locally because so many Socal mortgages require these kinds of loans. From the LAT:

The lower rates and somewhat easier terms reflect newfound confidence among banks in the housing market. That's because, by definition, jumbos are too big to be bought by Freddie Mac and Fannie Mae or to be insured by the Federal Housing Administration. Plus, the private market for mortgage-backed bonds dried up when the meltdown hit. So lenders making jumbo loans these days must be willing to take the risk of keeping them in their portfolios.

Layoffs in Long Beach: Boeing is slowing down production of the C-17 cargo plane as a way of extending the Long Beach assembly plant's life beyond 2012. But it will result in lost jobs, the number unspecified. The company is trying to get more international orders. (Press-Telegram)

Setback for Karatz: A federal judge turned aside allegations by lawyers for the former KB Home CEO that prosecutors intimidated two employees while soliciting testimony in the upcoming stock-options backdating case. (AP)

Tax-free McCourts: Another reason to dislike the Dodger owners: Frank and Jamie McCourt, now in the middle of their nasty divorce case, paid no federal or state income tax from 2004 to 2009. From the LAT:

The court papers indicate that the McCourts deliberately structured their business at least partially to allow them to live tax-free. Frank McCourt's lawyer, Marc Seltzer, didn't directly dispute Jamie's characterizations of the couple's tax planning or the details of their finances. He did, however, call her document filings "selective" and complained by e-mail that she made public "information which most people would respect as private."

Lehman's ghosts: The investment bank's failure has cost 28 cities and counties in California a total of $250 million. San Mateo County bore the brunt of the losses, at $155 million, but also taking hits were Long Beach, Thousand Oaks, Ventura, Burbank and Fontana. (WSJ)

Muni sale delayed: California Treasurer Bill Lockyer believes that legislation being considered in the Assembly would avoid another cut in the state's credit rating - and with it, the necessity of higher interest rates. The sale for up to $2 billion of tax-free municipal bonds had been planned for next week. (LAT)

Angeleno boss forced out: Michael Kong lost control of Modern Luxury Media, the company he and his brother founded. With a pile of debt to deal with, the banks are effectively in control. The brother is still with the company. (NY Post)

Plans for THR?: Richard Beckman, who leads the investment group that purchased the trade paper, is said to be considering dropping THR's daily print version, keeping Web coverage and a weekly print version. (NY Post)