January 20, 1993

In a city where intrigue and gossip are the coin of the realm, the Presidential Inaugural Committee has been the juiciest target for weeks. Caterers and party planners, who never criticize clients, can't wait to tell their latest horror stories. The Inaugural Committee has surrounded its calendar of events with the cloak of secrecy generally reserved for covert operations. A result is a cauldron of anger that reflects on the man who wanted his inauguration to be inclusive.

The fashion house of Yves Saint Laurent, a symbol of French creativity in haute couture and beauty products, was acquired today by the pharmaceuticals group Elf Sanofi in a transaction that underscored the current difficulties of French luxury industries. For the whimsical 56-year-old Mr. Saint Laurent, who presented his first collection 30 years ago and went on to build a group with interests that include clothes, perfume and accessories, the $636 million sale seemed an unlikely denouement. In effect, a house synonymous with artistic refinement will now be part of the huge state-owned oil conglomerate Elf Aquitaine, which controls Elf Sanofi. Not Strictly a Choice Pierre Berge, the chief business associate of Mr. Saint Laurent and one of the company's major shareholders, was blunt about the reasons for the sale. "I believe I have placed Yves Saint Laurent in good hands," he said. "But let's not hide the truth: a solution for the future of the company had to be found."

The International Business Machines Corporation reported a record $5.46 billion loss for the fourth quarter yesterday and offered little optimism that its business would improve anytime soon. The size of the computer giant's losses were striking, with the deficit of $4.97 billion for all of 1992 the biggest annual loss in American corporate history. But bad as the numbers were, they were in line with analysts' expectations, after I.B.M. announced last month plans to take the huge fourth-quarter charge against earnings to trim its work force and streamline operations.

Companies Five of the nation's 10 largest banks, including Citicorp, Chemical and Chase, reported higher-than-expected earnings, prompting banking experts to say they see the end in sight for the banking industry's difficulties with troubled commercial real estate loans made in the 1980's. [ Page A1. ] I.B.M. posted a $5.46 billion fourth-quarter loss, mostly because of costs to trim staff and streamline operations. The company also announced a $4.97 billion loss for the year, the biggest annual loss in American corporate history, and said it saw no prospects for improvement soon. [ D1. ] Bad news is good news for two men vying to become America's leading I.B.M. basher. [ D1. ]

Gov. Mario M. Cuomo today proposed a Spartan state budget that avoids general tax increases by squeezing aid to schools, closing three state mental hospitals, paring the state work force and increasing taxes on hospitals while cutting health benefits for the poor. In presenting his plan for the fiscal year that begins on April 1, Mr. Cuomo declared that the state was "not out of the woods yet," proposing that the general fund, which contains most of the state's spending, be allowed to grow only 1.6 percent, to $31.5 billion.