Archive for October, 2009

AmEx says can issue $12.1 billion more under TALF (Reuters)

Friday, October 30th, 2009 | Finance News

NEW YORK (Reuters) –
American Express Co (AXP.N), the largest U.S. credit card company by purchases, said on Friday it was eligible to issue $12.1 billion more of securities under the Term Asset-Backed Securities Loan Facility plan, or TALF.

The Federal Reserve launched TALF earlier this year to breathe life into consumer and small business lending, and eventually expanded it to encompass commercial real estate lending.

Under the program, the Fed lends to firms that post asset-backed securities or commercial mortgage-backed securities as collateral. The central bank extended the program until March 2010.

American Express issued $1.25 billion in TALF eligible securities during September, bringing the total of the year to $2.25 billion, according to a regulatory filing.

The credit card company became a bank last November as bond markets closed down and lenders outside the banking system began looking to fund themselves with deposits.

Being a bank also helped American Express win access to $3.4 billion of capital from the government's Troubled Asset Relief Program, which the company later repaid.

(Reporting by Juan Lagorio, editing by Matthew Lewis)


Nebraska federal lawsuit over layoffs dismissed (AP)

Friday, October 30th, 2009 | Finance News

OMAHA, Neb. – A woman who sued an Omaha-based regional retailer arguing she and others weren't properly notified before being laid off has dropped her legal fight.

Cynthia Zych sued Pamida Stores Operating Co. in April. Her lawsuit alleged the company violated a federal law aimed at protecting workers during certain mass layoffs and plant closings. She said she was one of 54 people laid off in January.

The law can be triggered in several ways, including when more than 50 employees are cut and they make up at least 33 percent of the employer's active work force.

Zych's attorney, Bob O'Connor Jr., said Friday he asked the court to dismiss the suit earlier this month because Pamida's layoffs didn't meet that requirement and therefore didn't violate the law.


Las Vegas Sands, MetLife, Manitowoc are big movers (AP)

Friday, October 30th, 2009 | Finance News

NEW YORK – The following stocks were among those that moved substantially or traded heavily Friday on the New York Stock Exchange:


Alcatel-Lucent, down 48 cents at $3.69

The telecommunications equipment maker saw its net loss widen in the third quarter as European phone companies cut back on spending.

Harman International Industries Inc., up $4.61 at $37.61

The company said its fiscal first-quarter sales rose from earlier this year and aggressive cost cuts continued.

Manitowoc Co., down $1.31 at $9.14

The industrial equipment maker posted a smaller loss as it cut costs, increased efficiency and reduced working capital costs.

Aon Corp., down $2.68 at $38.51

The insurance broker posted a higher third-quarter profit but missed expectations as its income from investments tumbled 69 percent.

Las Vegas Sands Corp., up 33 cents at $15.09

The casino operator received approval for its Hong Kong initial public offering as investors latched on to comments made by its CEO.

MetLife Inc., down $2.81 at $34.03

MetLife reported a loss of $650 million for the third quarter, driven by losses in its investment portfolio.

Estee Lauder Cos., up $1.36 at $42.50

A strong relaunch of a skin-care line and better-than-expected sales at airport stores helped more than double the company's profit.


Novatel Wireless Inc., down $3.27 at $8.92

The high-speed Internet service provider posted a disappointing outlook for the fourth quarter, despite strong third-quarter results.