PRESS DIGEST - Wall Street Journal - Oct 2

Oct 2 (Reuters) - The following are the top stories in the Wall Street Journal on Tuesday. Reuters has not verified these stories and does not vouch for their accuracy.

* New York's top prosecutor opened a new front in efforts to hold banks accountable for the financial crisis by filing a civil lawsuit against JPMorgan Chase & Co , alleging widespread fraud by the company's Bear Stearns unit in the sale of mortgage-backed securities.

* The judge overseeing the patent dispute between Apple Inc

and Samsung Electronics Co in a California federal court lifted a sales ban on a Samsung tablet computer after a jury found in August that the product didn't infringe an Apple patent.

* EADS shareholder Lagardère SCA said the terms of the aerospace company's proposed merger with BAE Systems Plc are "unsatisfactory" and should be re-examined, throwing another wrench into negotiations to create the world's largest defense and aerospace conglomerate.

* American Express Co , the credit-card giant with a reputation for affluent customers and customer service, agreed to pay $112.5 million to resolve charges from banking regulators that it engaged in illegal card practices.

* Federal Reserve Chairman Ben Bernanke pushed back against criticism that the central bank's low-interest-rate policies are enabling bad fiscal policy in Washington, saying the Fed's approach could help shrink the federal budget deficit over time.

* U.S. manufacturers rebounded in September, with fresh data showing factory activity expanded for the first time in four months despite weakening economies around the globe.

* Euro-zone manufacturing activity shrank for the 14th-straight month in September and unemployment hit a fresh record in August, suggesting prospects are slim for a quick return to growth in the currency bloc.

* Greece's international lenders cast doubt on parts of Athens' plans to save billions of euros through new cutbacks and tax measures, throwing a potential wrench in the government's efforts to reach a quick deal to unlock new aid for the country.

* The former head of failed lender IndyMac Bancorp Inc will pay $80,000 to settle a charge he misrepresented the company's financial condition, after a judge dismissed other civil allegations against him.

* British authorities have charged four people, including a former executive at Deutsche Bank AG , in relation to an alleged insider-trading ring in the most high-profile U.K. case of its kind.

(Compiled by Bangalore Newsroom)

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