BUSINESS IN BRIEF

Saturday, November 1, 2008

BANKING

Florida Bank Shut Down

Regulators shut down Freedom Bank, a small bank in Bradenton, Fla. It was the 17th failure this year of a federally insured bank.

The Federal Deposit Insurance Corp. was appointed receiver of the bank, which had $287 million in assets and $254 million in deposits. The FDIC said the bank's deposits will be assumed by Fifth Third Bank. Its four branches will reopen Monday as offices of Fifth Third Bank. In addition to assuming Freedom Bank's deposits, Fifth Third also will acquire about $36 million of the failed bank's assets. The FDIC will retain the rest for eventual sale.

The FDIC estimated that the failure will cost the deposit insurance fund up to $104 million.

Barclays Lines Up $11.8 Billion

Middle Eastern investors will pump up to $11.8 billion into Barclays, allowing the bank to strengthen its balance sheet without resorting to aid from the British government. The investors, which include the Qatar Investment Authority, an investment vehicle led by the Qatari royal family, and a member of the Abu Dhabi royal family -- could end up owning almost a third of the bank.

ECONOMY

Bank of Japan Cuts Key Rate

The Bank of Japan cut its key interest rate for the first time in more than seven years, joining central banks around the world in trimming borrowing costs to ease the impact of the global financial crisis.

The Bank of Japan policy board voted in a rare 4-4 split decision to reduce the uncollateralized overnight call rate from 0.5 percent to 0.3 percent. Gov. Masaaki Shirakawa, who has the final say in the event of a tie, said three of the four dissenters favored a bigger cut to 0.25 percent.

LEGAL

Poulsen Convicted of Fraud

A federal jury convicted the former chief executive of a failed health-care financing company in a $1.9 billion fraud case. Lance Poulsen, 65, founder of National Century Financial Enterprises, had been on trial for the past month on charges of securities fraud and money laundering. He was convicted on all 20 counts. His attorneys said they will file an appeal. Poulsen faces up to 135 years in prison, although his actual sentence will likely be shorter under federal-sentencing guidelines.

Poulsen was convicted in March and sentenced to 10 years in prison for attempting to bribe a witness in the case.

STOCKS

Six Flags Short of Listing Rules

Six Flags said it is "not in compliance" with the New York Stock Exchange's listing standards because its market capitalization has been less than $75 million for a 30-day average. The company now has 45 days to submit a plan demonstrating how it will comply with the exchange's rules by the end of an 18-month period.

Over the last year, the company's shares have shed 90 percent of their value, closing at 34 cents yesterday. Its market capitalization was $33.2 million as of the close of trading yesterday.

LEGAL

ICO Wins Damages From Boeing

ICO Global Communications of Reston won $236 million in punitive damages against Boeing and one of its units over a failed agreement to build a satellite telecommunications network.

Jurors in Los Angeles Superior Court today awarded ICO $59 million against Boeing Satellite Systems and $177 million against the parent company. The punitive damages come on top of $370.6 million in compensatory damages the jury awarded Reston, Virginia-based ICO on Oct. 21.

The jurors last week agreed with ICO's arguments that Boeing unfairly demanded additional money to finish and launch the satellites. Boeing said it would appeal the verdict.

EARNINGS

Chevron said third-quarter profit more than doubled, to $7.89 billion from $3.72 billion in the comparable period last year. Revenue rose 42 percent to $76.2 billion. The rise occurred after the price of crude surged to a record above $147 a barrel.

Compiled from reports by Washington Post staff writers, the Associated Press and Bloomberg News.