Business in brief: Ex-Fannie Mae chief reaches deal with feds
Former Fannie Mae chief Franklin Raines and two other top executives have agreed to a $31.4 million settlement with the government announced Friday over their roles in a 2004 accounting scandal.
Raines, former Fannie chief financial officer Timothy Howard and former controller Leanne Spencer were accused in a civil lawsuit in December 2006 of manipulating earnings over a six-year period at the company, the largest U.S. financer and guarantor of home mortgages.
Raines, who was President Clinton’s budget director, is relinquishing company stock options, proceeds from stock sales and other benefits. His part of the settlement is worth $24.7 million.
– Associated Press
SAN FRANCISCO
First-quarter success propels Google stock
Google Inc.’s stock soared 20 percent Friday, restoring $28 billion in shareholder wealth as Wall Street renewed its love affair with the Internet search leader after weeks of worry about an online advertising slowdown.
Driven by stellar first-quarter results that surprised industry analysts, Google shares surged $89.87 to finish at $539.41. It marked the biggest one-day gain since Google’s initial public stock offering in August 2004, leaving the shares at their highest closing price since January.
Google had lost favor with investors as Web surfing data and the faltering U.S. economy raised concerns that people aren’t clicking as frequently on the Internet advertising links that generate most of the Mountain View, Calif.-based company’s revenue.
– Associated Press
SPOKANE
Burgans closed; liquidation to follow
Burgans Furniture has closed, and its liquidation sale begins Wednesday morning with a two-day, invitation-only event, according to a letter sent to customers and a recorded phone message. The sale opens to the general public Friday.
Majority owner Bruce McEachran on Tuesday announced E.S. Burgan & Son Inc. planned to close the store and sell the block containing its buildings. He did not reveal when the store would close.
The sale will run from 10 a.m. to 9 p.m. on Wednesday and Thursday, 10 a.m. to 6 pm on April 25 and 26 and 11 a.m. to 5 p.m. on April 27.
– Parker Howell
NEW YORK
AT&T to slash jobs, mostly in management
AT&T Inc. on Friday said it plans to cut about 4,600 jobs, or 1.5 percent of its work force, to shift resources to growing parts of its business.
The nation’s largest telecommunications provider said most of the layoffs will be among managers, particularly in wire-line operations, including local phone service and service for large corporate customers. Jobs in corporate functions like finance will also be cut.
The company said in a regulatory filing that it plans to take a $374 million first-quarter pretax charge because of the job cuts. AT&T reports earnings Tuesday.
– Associated Press