WASHINGTON — Consumers borrowed less for a record eighth straight month in September amid rising unemployment and tight credit conditions. Economists worry the declines in borrowing will drag on the fledgling recovery.

The Federal Reserve said yesterday that borrowing fell at an annual rate of $14.8 billion in September. That's the biggest decline since July and was larger than the $10 billion drop economists expected.

Americans are borrowing less as they try to repair cracked nest eggs and replenish rainy day funds in a dismal jobs market. Many are finding it hard to get credit as banks, hit by the worst financial crisis in decades, have tightened lending standards.

OBAMA SIGNS STIMULUS BILL

WASHINGTON — President Obama signed a $24 billion economic stimulus bill into law yesterday, giving tax incentives to prospective homebuyers and additional jobless benefits to those idled by the business slump.

The bill-signing came a day after the House, displaying rare bipartisan agreement over the troubling employment picture nationally, voted 403-12 to pass the measure. The Senate had approved it unanimously on Wednesday.

The White House said the law, which also includes tax cuts for struggling businesses, builds on provisions in the $787 billion stimulus package enacted last February to avert an economic meltdown.

ANOTHER PROFITABLE QUARTER FOR AIG

NEW YORK — AIG said yesterday it was profitable for the second straight quarter as its core insurance operations continue to stabilize after the company's bailout by the government last year.

American International Group Inc. also said the amount of its government financial assistance dropped by 4 percent during the third quarter. Its results got a lift from the increasing value of investments it still holds that soured last year and helped drive it to the brink of collapse.

While new insurance business stabilized compared with the second quarter, it is still sharply below year-ago figures as the economy remains weak and AIG struggles with its image after being bailed out by the government.

BUFFETT COMPANY'S 3Q EARNINGS TRIPLE

OMAHA, Neb. — Warren Buffett's company says its third-quarter profit tripled as the improving economy and stock market boosted the value of Berkshire Hathaway Inc.'s derivative contracts.

Berkshire said yesterday it generated $3.2 billion, or $2,087 per share, in net income. That's up significantly from last year's $1.1 billion, or $682 per share.

Most of the swing in earnings is related to unrealized gains in the value of Berkshire's derivatives, some of which are tied to credit defaults and some of which are tied to equity markets.

Berkshire's insurance companies performed well, but its other operating companies struggled.

FREDDIE MAC LOSES $6.3 BILLION

WASHINGTON — Freddie Mac says its losses narrowed to $6.3 billion in the third quarter and the company didn't need a federal cash infusion.

The McLean, Va.-based mortgage finance company has received about $51 billion since it was seized by federal regulators in September 2008, but avoided tapping the government for more aid for the second-straight quarter.

The quarterly loss, which works out to $1.94 per share, includes $1.3 billion in dividends paid to the Treasury Department. It compares with a loss of $25 billion, or $19.44 per share, in the year-ago period.

GM EUROPE CHIEF STEPPING DOWN

DETROIT — Carl-Peter Forster, the chief executive of General Motors Europe who runs its struggling Opel unit, will leave the company, GM said yesterday.

GM said in a statement that Forster, 55, would advise the company on picking a new Opel CEO. The statement gave no time frame for his departure.

Forster will be replaced temporarily by Nick Reilly, who is now president of GM's international operations who once ran Opel's Vauxhall operations in the United Kingdom.