NEW YORK (Reuters) - Stocks fell more than 2 percent on Friday, dragging the Dow into negative territory for the year after a dismal U.S. jobs report added to fears that Europe's spiraling debt crisis was dragging down the world economy.

WASHINGTON (Reuters) - The chief regulator of U.S. national banks did not pay enough attention to how lenders process home foreclosures and underestimated the risks it posed until problems broke into the open in late 2010, the Treasury Department's inspector general said in a report released on Friday.

WASHINGTON (Reuters) - U.S. job growth braked sharply for a third straight month in May and the unemployment rate rose for the first time in nearly a year, raising chances of further monetary stimulus from the Federal Reserve to support the sputtering recovery.

NEW YORK (Reuters) - Rating agency Moody's Investors Service said it had lowered its ratings ceiling on Greek domestic debt issuers due to the rising risk of the country exiting the euro zone, but added it did not consider that the most likely scenario for the country.

SHANGHAI (Reuters) - China is considering steps to allow overseas firms to float shares in the country and foreign institutions to invest yuan they hold in domestic markets, state media on Saturday quoted a government document as saying.

(Reuters) - JPMorgan Chase & Co has returned about $600 million that was at the bank when MF Global Holdings Ltd went bust in October, the Wall Street Journal reported late on Friday citing people familiar with the matter.

TOKYO (Reuters) - Japan's securities regulator plans to ask the U.S. Securities and Exchange Commission (SEC) to cooperate in a widening probe of insider trading in Japanese shares, two sources with knowledge of the situation said on Saturday.

WASHINGTON, June 1 - Consumer spending rose modestly in April while incomes grew more slowly and inflation pressures eased, according to Commerce Department data published on Friday.

NEW YORK (Reuters) - The manufacturing sector grew in May at its slowest pace in three months as economic trouble overseas dented demand for exports, an industry survey showed on Friday.

LONDON/SINGAPORE (Reuters) - The world's major economies are faltering or shrinking, with Chinese factory output barely growing, powerful European manufacturing countries falling deeper into malaise and the U.S. stuttering, surveys showed on Friday.

DETROIT (Reuters) - Chrysler Group posted a smaller-than-expected U.S. sales gain in May, and Ford Motor Co posted mixed results, suggesting industrywide demand slowed from the strong pace of the first four months.

(Reuters) - Chesapeake Energy Corp said it has found "significant" oil and natural gas reserves in parts of the Anadarko Basin in the Texas Panhandle and western Oklahoma.