Reuters - Countrywide's subprime mortgage defaults for 2006 loans may exceed the company's highest on record, a company executive told a government panel examining mortgage lending.

Reuters - Congress should not bail out subprime lenders and brokers who made risky mortgage loans to borrowers with bad credit, but lawmakers can take several steps to protect consumers going forward, a representative of the Conference of State Bank Supervisors said on Thursday.

Reuters - A surprise drop in the number of new claims filed for jobless aid pointed to a healthy U.S. labor market, but a forward-looking measure of the economy showed momentum has slowed, data released on Thursday showed.

AP - The smooth flow of credit is "essential for a healthy economy," Federal Reserve Chairman Ben Bernanke said Thursday, amid continuing concerns about the impact of risky mortgage loans on the economy.

AP - Stocks opened flat Thursday as investors awaited more economic data to see if they should extend this week's big rally or cash in some of their gains.