December 20, 2002

Floyd Norris column on how Navistar International used its weak pension plans as cash cow by selling $175 million of its stock to pension plans and putting that money back into plans; says Navistar last week raised $190 million by selling five-year convertible bonds in deal underwritten by Credit Suisse First Boston; adds Navistar's credit rating is below investment grade, but interest rate on bonds is only 2.5 percent; graph (M)

Quirks in US tax code can add up to much larger tax savings for small-business buyers of giant sport utility vehicles than buyers of clean-fuel cars; environmental groups want tax breaks ended; note that despite concerns from nation's growing dependence on imported oil, deductions provide far greater incentive to buy gas guzzlers than fuel-efficient cars; eligible buyer of 2003 Hummer H2 could deduct $34,912 of $48,800 base price in vehicle's first year of service, translating into tax savings of nearly $13,000 for someone in highest personal income tax bracket; biggest piece in package of tax breaks is immediate deduction for any depreciable capital expense of $24,000 this year, rising to $25,000 starting next year; charts; photo (M)

New York Yankees sign Japanese outfielder Hideki Matsui to three-year, $21 million contract; photo (M)

Dennis Publishing, publisher of successful Maxim magazine, plans two television specials on ESPN and NBC that are related to magazine; Dennis Publishing is co-sponsor of The Maxim NFL Beach Bash in February, one-hour ESPN show that will run after Pro Bowl and feature actors Jennifer Love-Hewitt and Orlando Jones as hosts; special will be partly awards show and partly filled with parodies of hit TV shows; Maxim's Hot 100, issue of magazine that displays women on rise in variety of fields--and poses--will come to life as one-hour show on NBC in June; Dennis Publishing owner Felix Dennis says programs are just beginning of effort to develop entire cable channel called Maxim Entertainment Network, or MEN; photo (M)

George Vecsey Sports of The Times column discusses success of New Jersey Nets over past year, which has drawn sellout crowds and celebrities to games against marquee teams like Los Angeles Lakers; photo (M)

Analysis: Regulatory settlement that requires nation's top brokerage firms to pay fines and to make changes in how they do business speaks to more than failures of Wall Street research; settlement, and investigation that led up to it, shows serious breakdown in self-policing by brokerage firms, duty that forms basis of nation's securities laws; shows how regulators at Securities and Exchange Commission, New York Stock Exchange and NASD, all charged with protecting investors, fell down on their jobs during stock surge of late 1990's, as throngs of individuals were entering market for first time; chart; photos (M)

Metropolitan Transportation Authority agrees under settlement to pay more than $600 million in increased wages and benefits over three years, translating into 4.5 percent annual increase in compensation; huge increase in contributions for health coverage accounts for high overall jump in compensation; settlement also calls for one-time $1,000 payment in contract's first year; Cooper Union urban affairs expert Fred Siegel says precedent set by settlement will make future labor negotiations difficult for Mayor Michael Bloomberg; contract will increase MTA's labor costs by more than $200 million per year during life of contract, at time when MTA claims it faces $2.7 billion deficit; officials involved in negotiations say MTA might also have to pay additional $247 million over three years to finance pensions (M)

Sen Bill Frist, close ally of Pres Bush, becomes first Republican to openly challenge Trent Lott for position of majority leader; quickly wins support of several influential colleagues, including Sens John W Warner and Lamar Alexander; Frist says majority of Republican caucus believes change in leadership would benefit institution of United States Senate; his actions make future even more uncertain for Lott, who has been embroiled in controversy over racially charged remarks he made earlier this month; Lott's task of winning support among majority of his colleagues has been made more difficult now that critics have someone--Frist--around whom to coalesce; despite appearance of growing coalition for Frist. Lott's spokesman warns that he would not leave his job without a fight; White House officials insist they have done nothing to encourage Frist, but there is clear sense of relief among top aides to Pres Bush, who have despaired as Lott's travails have dominated political headlines and events have veered out of their control; photo; chart listing positions of some Republican senators (L)

Article on grille wreaths that have become familiar holiday ornaments on cars and sport utility vehicles in New Canaan, Conn; photos (M)

New York Jets center Kevin Mawae is named to fourth consecutive Pro Bowl (M)

Japanese government expects economy to grow about 0.6 percent in fiscal year that begins Apr 1, 2003; current fiscal year's expansion is forecast at 0.9 percent; grinding deflation and rising unemployment are likely to persist (M)

The latest romantic-comedy pairing: Hugh Grant and Sandra Bullock, left, in ''Two Weeks Notice.'' He's a high-powered New York real estate developer; she's the lawyer he hires as his chief counsel.