PRESS DIGEST - Wall Street Journal - July 14

July 14 (Reuters) - The following were the top stories in The Wall Street Journal on Monday. Reuters has not verified these stories and does not vouch for their accuracy.

* The U.S. Treasury and Federal Reserve sought to shore up confidence in Fannie Mae (FNM.N) and Freddie Mac (FRE.N) with a plan that placed the federal government firmly behind the mortgage giants. The move also calls for a provision to give the Fed a "consultative role" in setting capital requirements and other standards for the lenders.

* Anheuser-Busch Cos Inc (BUD.N) agreed to be acquired by InBev INTB.BR for about $52 billion, creating the world's largest beer maker and placing an iconic American company in the hands of a Belgian-Brazilian giant. The $70-a-share deal marks an abrupt end to what many expected to be a prolonged takeover drama. The companies plan to call the new brewer Anheuser-Busch InBev.

* Steve & Barry's, regarded just weeks ago as one of America's fastest-growing retailers, now qualifies as one of the industry's most unusual blowups. Mall owners courted the retailer with fat payments to outfit its cavernous stores. When the payments slowed, Steve & Barry's collapsed.

* The federal government's seizure of IndyMac Bancorp Inc IMB.N is deepening worries about the U.S. banking industry, which is in a tightening bind following a long run of prosperity. Banks and thrifts are struggling against a rising tide of bad loans, and it is becoming increasingly clear that some lenders won't be able to dig their way out.

* Bond-rating firms could face rules on new products similar to those already in place for stock and derivatives exchanges, as part of a House bill likely to be proposed Monday.

* Yahoo Inc (YHOO.O) has rejected a new proposal from Microsoft Corp (MSFT.O) and investor Carl Icahn to break up the Internet firm, setting the stage for an intensified proxy battle as fewer options for compromise among the combatants remain.

* The Securities and Exchange Commission, under fire for not responding more vigorously to a raft of rumors that have pounded stock prices, says it is cracking down on firms or individuals that illegally spread false rumors.

* A new jet-engine war took off at the Farnborough air show as General Electric Co (GE.N) and Pratt & Whitney touted rival technologies for better fuel efficiency.