Newspaper wrap-up: NYS regulator urges banks to bail out struggling bond insurers

MAJOR PAPERS:

Two years after saying it would open about 100 new branches a year, Citigroup Incorporated (NYSE: C) has decided to drastically cut back, and will instead focus on big markets, reported the Wall Street Journal.
Wal-Mart Stores Inc (NYSE: WMT) wants a piece of the pharmacy benefits business, the Wall Street Journal reported, and will begin an initial program to help "select employers...manage how they process and pay prescription claims," CEO Lee Scott said.
New York insurance superintendent Eric Dinallo is urging bank executives to provide up to $5B in initial capital to support struggling bond insurers such as MBIA Inc (NYSE: MBI) and Ambac Financial Group Inc (NYSE: ABK), the Financial Times reported. Sources believe the insurance regulator is looking for leading U.S. banks to ultimately commit up to $15B.

OTHER PAPERS:

According to the Associated Press, Yahoo! Inc (MASDAQ: YHOO) may be eyeing an online music service, two record company executives familiar with the matter said. As part of an ad-supported service, the sources said Yahoo has held talks with several major record labels to potentially offer unprotected MP3s for free or for sale.

Tags: ABK, Ambac, bond insurers, BondInsurers, C, Citigroup, financing, MBI, MBIA, Wal-mart, WMT, Yahoo!, YHOO