Demand still strong for new home construction

WASHINGTON -- The housing market is still booming with construction of new homes rising 0.2 percent in May. Builders rushed to break ground on new projects to meet strong demand fueled by low mortgage rates. The May increase left construction of new homes and apartments at an annual rate of 2.009 million units last month, up from 2.005 million units in April, when construction activity jumped by 9.4 percent. Housing starts have been above the 2 million annual rate in seven of the last 10 months.

N.Y. attorney general sued over bank probe

NEW YORK -- An association of leading commercial banks and a federal agency sued Attorney General Eliot Spitzer on Thursday, saying his probe into the lending practices of national banks violates laws ensuring banks are not subject to supervision by state authorities. The lawsuit in U.S. District Court in Manhattan asked the court to block Spitzer from demanding information to enforce federal and state discrimination-in-lending laws against banks belonging to the Clearing House Association.

Pfizer pays top dollar for antibiotics firm

In the latest foray by a pharmaceutical behemoth outside its research labs for biotech drugs, Pfizer Inc.'s said Thursday it would pay $1.9 billion in cash for a tiny company that makes a new breed of antibiotics. Pfizer is offering to shareholders of Vicuron Pharmaceuticals $29.10 a share, a 74 percent premium over the biotech's average stock price the last 90 days. Such a hefty premium underscores the industry's need to bolster lackluster research programs and replace lucrative drugs soon to be threatened by generic competition because of expiring patents. Vicuron is based in King of Prussia, Pa., and employs about 200 workers.

-- From wire reports