Fed Chairman Ben Bernanke will get the nod for another four-year term from President Barack Obama this morning, ending weeks of speculation but likely surprising few economists or policymakers. The New York Times and Wall Street Journal reported the move last night, around the same time the White House scheduled a 9 a.m. statement by the president. Any reappointment would require Senate confirmation.

Speculation has been brewing over whether Obama would reappoint Bernanke, whose term expires in January. Many economists and the president have praised Bernanke’s role in stemming the financial crisis — arguing it would have been much worse had he not acted swiftly and decisively; but the former Princeton professor has also come under fire for underestimating the repercussions of the subprime bubble and moving too slowly when it came to consumer protection.

Source: BusinessWeek

Hospitals to Profit from Health Reform

The hospital industry will earn $16 billion over ten years thanks to a deal reached in July with the Obama Administration, according to an analysis by the Tennessee Hospital Association. As part of proposed health care reform, hospitals will contribute $155 billion in cost savings but will take in $171 billion in additional money over the same time period.

Source: New York Times

Auto Dealers Prepare for Post-Clunkers Slowdown

Following the end of the Cash for Clunkers program yesterday, auto dealers are prepared for a sharp fall in demand. “We’re definitely going to have a hangover,” said Edward Tonkin, vice chairman of the National Automobile Dealers Association. Nationwide, dealers had had submitted 625,000 Clunkers applications, worth $2.58 billion.

Source: CNNMoney

Controversy Grows over Lockerbie Bomber’s Release

The debate about Scotland’s release of the Libyan terrorist convicted of the Lockerbie bombing grew on Monday, with Labor and Conservative leaders as well as the head of the FBI attacking the Scottish National Party government’s decision. As U.S. family members of the victims organized a campaign to boycott Scotland, Buckingham Palace announced the cancellation of a planned trip to Libya by the Queen’s second son, the Duke of York.

Source: Financial Times

Hollywood’s Hot Streak Continues

The movie studios are on track to set a box-office summer record following another strong weekend. Weinstein Co.’s “Inglourious Basterds” took in a better-than-expected $38.1 million. So far, ticket sales are up 5% over last summer.

Source: Variety

Winter Flu Outbreak Could Hospitalize 2 Million

Swine flu could hospitalize nearly 2 million Americans and send as many as 300,000 to intensive care units, the President’s Council of Advisors on Science and Technology reported yesterday. Between 30,000 and 90,000 Americans could die from the flu, compared to the 35,000 fatalities in a normal flu season.

Source: Los Angeles Times

GM Mulls Abandoning Plans to Sell Opel

After the GM board rejected CEO Frederik “Fritz” Henderson’s recommendation to sell Opel and Vauxhall to a Canadian auto supplier and a Russian bank and car maker, the company is now considering holding on to the two European operations, according to three sources. The board has given Henderson an early September deadline to draw up a $4.3 billion financing plan for Opel and Vauxhall.

Source: Wall Street Journal

Bank of America Agrees to Merrill Settlement

According to court documents released yesterday, Bank of America will pay $150 million to settle a class-action lawsuit accusing Merrill Lynch ex-CEOs Stanley O’Neal, John Thain and other former executives of misleading investors. BofA acquired Merrill in January.

Source: Reuters

Fed Loses Transparency Case

The chief U.S. judge in Manhattan ruled yesterday the Federal Reserve must comply with a Freedom of Information Act request by Bloomberg News to disclose the names of companies in its emergency lending programs. Although the Fed argued release of the names would hurt shareholder confidence in the borrowers, Judge Loretta Preska gave the Fed five days to give reporters the requested documents.