Fannie, Freddie 'in no danger of failing'WASHINGTON - Federal Reserve Chairman Ben Bernanke told Congress Wednesday that troubled mortgage giants Fannie Mae and Freddie Mac are in "no danger of failing."The Fed chief made his remarks to the House Financial Services Committee, his second day on Capitol Hill where he briefed lawmakers on the problems plaguing the economy.The Fed and the Treasury Department on Sunday came to the rescue of mortgage giants Fannie Mae and Freddie Mac, offering to throw them a financial lifeline. The two companies hold or guarantee more than$5 trillion in mortgages - almost half of the nation's total- and are major sources of financing for the mortgage market.Oil tumbles again; Prices fall over $10NEW YORK - Oil prices settled sharply lower for the second time in a row Wednesday, leaving crude more than $10 cheaper in just two days of frenzied trading and prompting speculation that the hard-charging market may be running out of steam.Light, sweet crude for August delivery fell $4.14 to settle at $134.60 per barrel on the New York Mercantile Exchange, after earlier sinking as low as $132. The drop follows a $6.44 sell-off Tuesday, crude's biggest since the Gulf War.The two-day slide of $10.58 per barrel marks a dramatic turnaround in crude prices, which as recently as Friday traded at record highs above $147 per barrel.FBI looking into IndyMac BancorpWASHINGTON - The FBI is investigating failed bank IndyMac Bancorp Inc. for possible fraud, an official said Wednesday of the government's latest target following the collapse of the nation's subprime mortgage market.Wells Fargo profit drops, dividend risesNEW YORK - Wells Fargo gave anxious investors a pleasant surprise Wednesday, reporting a profit drop that was milder than anticipated and lifting its quarterly dividend by 10 percent.Wells Fargo's second-quarter profit fell 22 percent as more customers at the nation's fifth- largest bank failed to pay back their loans. But it raised its dividend to 34 cents from 31 cents - at a time when many other financial institutions are slashing theirs to preserve capital.Delta, AMR combined lose $2.5 billionATLANTA - There are signs overall demand for flying within the U.S. is softening, but industry observers insisted that will not stop rising fares, more fees and fewer domestic flights.That point was underscored as Atlanta-based Delta Air Lines Inc. reported a $1.04 billion loss in the April-June quarter and Fort Worth, Texas-based AMR Corp., the parent of American, posted a $1.45 billion loss for the quarter. One- time charges and unprecedented fuel costs impacted both airlines, which saw their shares soar as their results beat Wall Street expectations and oil prices dropped.The two carriers have posted combined net losses of $9.2 billion since the start of the year.Fares have risen across the country since January over 20 percent, and much higher in smaller cities, according to Rick Seaney of FareCompare.com. Oil prices have doubled in the last year.EBay 2Q profit rises 22 percentNEW YORK (AP) - EBay Inc. said Wednesday that its second-quarter profit jumped 22 percent, as the online auction company enjoyed strong growth in its e-commerce sites and its PayPal payments service.But eBay's outlook for the current quarter was softer than analysts had been forecasting, and the auction company's shares fell 6 percent in after-hours trading. The stock had gained 4.5 percent in regular trading to close at $28.10.San Jose, Calif.- based eBay earned $460 million, or 35 cents per share, compared with $376 million, or 27 cents per share, in the year-ago quarter. Excluding certain items, eBay earned 43 cents per share.That beat Wall Street's forecast for 41 cents per share.Fed: Members thought next rate move would be upWASHINGTON (AP) - Worried about rising inflation, Federal Reserve officials at their meeting in June thought the Fed's next move on interest rates was likely to be up.Documents released Wednesday provided insights into the Fed's thinking at the June 24-25 session, when they ended a nearly yearlong string of rate reductions, aimed at bolstering a teetering economy. At that time, Fed Chairman Ben Bernanke and his colleagues were increasingly concerned that galloping energy and food prices could spread inflation through the economy, so they left the Fed's key rate at 2 percent.However, with all the economic uncertainty, the timing of any such increase was far from clear, the documents suggested.

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