Wednesday, November 26, 2008
BANKING
FDIC's Troubled Bank List Grows
The Federal Deposit Insurance Corp. said that the list of banks it considers to be in trouble shot up by 46 percent, to 171, during the third quarter.
Total assets held by troubled institutions climbed from $78.3 billion to $115.6 billion -- a figure that suggests that the nation's top 20 banks aren't on the list, even though they also are getting slammed by the ongoing credit crisis. The FDIC does not reveal the names of institutions it deems troubled.
On average, about 13 percent of institutions on the FDIC's list end up failing.
Nine banks failed during the third quarter, decreasing the FDIC's deposit insurance fund to $34.6 billion from $45.2 billion in the second quarter.
CONSUMER SAFETYMelamine Found in Baby Formula
The industrial chemical melamine has been found in infant formula made in the United States but in low amounts that pose no health concern, according to the Food and Drug Administration.
The finding was expected because of the chemical's use in can liners and manufacturing, said Stephanie Kwisnek, an FDA spokeswoman.
Melamine-tainted milk products have sickened more than 50,000 children in China since September, and several died. Products from China that contain milk products are being blocked at U.S. ports until tests show they aren't tainted with melamine, the FDA said earlier this month.
Banned Chemical Turns Up in ToysWashington advocacy group U.S. PIRG said it found toys for sale that contained as much as 400 times the amount of phthalates allowed under a new federal law that takes effect early next year. The group, which released its annual toy safety report yesterday, joined several lawmakers in protesting a recent Consumer Product Safety Commission decision to apply the ban only to products made after Feb. 10.
CPSC spokeswoman Julie Vallese said the policy is based on the way the law was written and only Congress can change it.
ENTERTAINMENTBlockbuster to Offer Web Rentals
Blockbuster will start renting movies and television shows through a new gadget that may give consumers another reason to bypass the struggling video chain's 7,500 stores. The system relies on a small box that connects to television sets and stores video after it's downloaded over high-speed Internet connections.
The player, made by 2Wire, is based on the same concept as storage devices made by Apple and Vudu. The devices are all meant to provide a bridge between the Internet and TVs.
Netflix, a Blockbuster nemesis, has been trying to make the same leap with a video-streaming service that can be watched on TV sets through a variety of devices, including a $100 box introduced by Roku six months ago.
EXECUTIVESAmtrak Names Temporary CEO
Amtrak says it has selected Joseph Boardman, administrator of the Federal Railroad Administration, to be chief executive for one year. Boardman replaces Alex Kummant, who resigned Nov. 14 after two years marked by significant growth in ridership and revenue.
Boardman has served as administrator of the FRA since 2005. A search will begin in the coming months for a permanent leader.
MERGERS & ACQUISITIONSEthanol Firms Talking Buyout
VeraSun Energy, the nation's No. 2 ethanol producer, announced that it has received an unsolicited takeover bid one month after seeking bankruptcy protection. The announcement also came just hours after the nation's biggest producer, Poet, said it was talking with companies about buyouts.
Neither Poet nor VeraSun would say whether the two are negotiating a deal together. Poet and VeraSun control about a third of the nation's ethanol capacity.
EARNINGSD.R. Horton, the largest U.S. home builder, reported its sixth straight loss and cut its dividend. The company's fiscal fourth-quarter loss widened to $799.9 million from $50.1 million a year earlier. Revenue for the period ended Sept. 30 was $1.54 billion, down from $2.97 billion. For the full fiscal year, D.R. Horton lost $2.63 billion, compared with a loss of $712.5 million a year ago. Full-year revenue fell 43 percent, to $6.16 billion.
Borders Group said its third-quarter loss widened to $175.4 million from $161.1 million in the comparable period last year as consumers limited their spending. Revenue dropped 9 percent, to $693.4 million. Borders, which has been restructuring for more than year, said it was no longer considering selling its core business.
Compiled from reports by Washington Post staff writers, the Associated Press and Bloomberg News.
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