Briefs: Consumers spend in November

WASHINGTON -- Consumers put aside worries about slumping home sales and soaring gasoline prices and headed to the malls in November, pushing spending up by the largest amount in 3½ years. The Commerce Department reported Friday consumer spending shot up 1.1 percent last month, nearly triple the October gain. It was the biggest one-month jump since a 1.2 percent rise in May 2004.

Fed auctions attract commercial banks

WASHINGTON -- The Federal Reserve, working to combat the effects of a severe credit crunch, announced Friday it had auctioned another $20 billion in funds to commercial banks at an interest rate of 4.67 percent. Fed officials pledged to continue with the auctions "for as long as necessary." The central bank said it had received bids for $57.7 billion worth of loans, nearly three times the amount being offered, indicating continued strong interest in the Fed's new approach to providing money to cash-strapped banks. It was the second of four scheduled auctions. The first auction, on Monday, of $20 billion resulted in loans being awarded at an interest rate of 4.65 percent. There were 93 bidders seeking $63.6 billion at the first auction and 73 at the second. Two more auctions will occur in early January.

Merrill may get foreign investment

NEW YORK -- Singapore's state-owned investment fund is mulling a $5 billion investment in Merrill Lynch & Co., according to a report Friday, potentially providing the nation's biggest brokerage with badly needed cash amid billions of dollars in credit losses. The investment bank is said to be in advanced talks with Temasek Holdings about a capital injection, according to a report in The Wall Street Journal. A spokeswoman for Merrill Lynch declined to comment. Merrill has taken $7.9 billion of writedowns from bad bets on risky mortgage-backed securities.