Business Briefing
3 banks join failure list, now at 133
Regulators shut down lenders in Arizona, Florida and Kansas, bringing the number of bank failures to 133.
The institutions shut down were Valley Capital Bank of Mesa, Ariz.; Republic Federal Bank in Miami; and SolutionsBank in Overland Park, Kan.
The Federal Deposit Insurance Corp. sold each bank to another institution. The FDIC estimates the failures will cost the deposit insurance fund $252 million.
ASIA
China’s exports best since 2008
China’s exports are making a comeback after a jarring slump threw millions out of work, a sign of improving global demand that along with a torrent of stimulus money is accelerating recovery in the world’s No. 3 economy.
The trade figures for November were the best in a year, with exports falling just 1.2% from November 2008. Retail sales, factory output and investment also saw robust growth last month. The figures did show a return to inflation, though only at the modest level of 0.6%, after nine months of falling prices.
ENERGY
PG&E to study ocean waves
PG&E Corp., owner of California’s largest utility, signed an agreement with the U.S. Air Force to study a wave-energy project off the California coast.
The San Francisco-based utility filed for a permit with the Federal Energy Regulatory Commission for a three-year investigation.
After the test, the company said, it may seek a license to install devices that could produce as much as 100 megawatts from ocean waves.
The project will be located off northern Santa Barbara County near the Vandenberg Air Force Base and would provide electricity to the base and the company’s grid, PG&E said.
COURTS
EBay assurances weren’t in writing
Assurances that former EBay Inc. chief Meg Whitman gave Craigslist Inc.’s officials before EBay bought into the online classifieds company were not put in writing, Craigslist’s founder acknowledged.
Under cross-examination in a lawsuit filed by EBay, Craig Newmark said assurances that EBay would be happy holding a minority stake in Craigslist for several years and that Craigslist would be EBay’s exclusive play in the online classifieds market were not in the agreement the two companies signed in August 2004.
RESORTS
Icahn to buy debt of Trump casinos
Billionaire investor Carl C. Icahn agreed to buy a majority of the first-lien bank debt of Trump Entertainment Resorts Holdings, which owns three resorts in Atlantic City, N.J.
The deal is part of a reorganization plan Icahn negotiated to help the casino company emerge from bankruptcy. Trump Entertainment filed for bankruptcy in February, the third such filing for it or its corporate predecessors.
RESTAURANTS
Wendy’s to leave Japan, for now
The Wendy’s hamburger chain severed its agreement with its sole franchise owner in Japan and will at least temporarily close its 71 restaurants there by the end of December.
Wendy’s ended its deal with Zensho Co. but said it hopes to be back in Japan with new franchisees soon.
Wendy’s had $70 million in sales in Japan in fiscal 2009. Japan’s burger business has long been dominated by McDonald’s, which is said to enjoy a market share of about 65%.
-- times wire reports
