Briefcase: Rock-bottom interest rates likely to stay
Rock-bottom interest rates likely to stay through 2014
WASHINGTON – The Federal Reserve said Wednesday that it was likely to leave short-term interest rates at rock-bottom levels at least through late 2014, pushing out its easy-monetary policy even further into the future than previously indicated.
In a statement at the end of its two-day meeting, policymakers at the central bank acknowledged the recent improvements in the economy but said that they expected “economic growth over coming quarters to be modest” and the unemployment rate, currently 8.5 percent, to decline “only gradually.”
The decision was what many analysts had expected.
An interest-rate forecast is a historic step for the Fed, the latest in a series of moves under Chairman Ben Bernanke to increase transparency and communication with the public.
Tribune Washington bureau
Judge may reverse parts of WaMu insider-trading ruling
WILMINGTON, Del. – A Delaware bankruptcy judge on Wednesday granted Washington Mutual Inc.’s request that she consider throwing out portions of a September ruling that gave some creditors permission to pursue claims of insider trading by several hedge funds, who are also WaMu creditors.
WaMu and supporting creditors argued that an agreement on its latest reorganization plan depends on Judge Mary Walrath removing language regarding the insider trading allegations from the September ruling, in which she rejected Washington Mutual’s proposed reorganization plan for a second time.
Washington Mutual announced last month that it was submitting a new plan to distribute about $7 billion to creditors after reaching an agreement with major creditors, including those who had made the insider trading allegations against the hedge funds.
Associated Press
Former BP employee files whistleblower lawsuit
NEW ORLEANS – A former BP employee has filed a whistleblower lawsuit against the company, claiming he was fired for airing concerns about the cleanup of Mississippi’s shoreline after the Gulf oil spill.
In a federal suit filed last Friday in New Orleans, August Walter claims one of his BP bosses manipulated data on shoreline cleanup and didn’t give the Coast Guard “the true status” of what substances needed to be cleaned.
Walter, a Covington, La., resident who helped develop BP’s cleanup plans in Mississippi after the 2010 spill began, claims in the suit that he was fired last month in retaliation for complaining that BP wasn’t following environmental regulations and was “picking and choosing what oil to pick up.”
BP spokesman Tom Mueller said the company doesn’t believe Walter’s allegations have merit but will investigate “consistent with our personnel policies and code of conduct.”
Associated Press
Paper clips
• Quicker deliveries of Boeing’s commercial airplanes helped it report a 20-percent jump in fourth-quarter profits, and offset sluggish growth in its defense business. Boeing Co. posted net income of $1.39 billion on Wednesday, or $1.84 per share. Analysts surveyed by FactSet expected $1 per share. Revenue was $19.56 billion, also better than expected.
• Delta and US Airways reported better-than-expected fourth-quarter earnings on Wednesday, capping two straight years of profits. It was Delta’s first back-to-back annual profit since 1999-2000. US Airways last reported profits two years in a row in 2006-2007.
• Netflix has regained most of the U.S. customers it had lost following an unpopular price increase. Fourth-quarter figures released Wednesday show Netflix Inc. ended December with 24.4 million subscribers in the U.S., up 600,000 from 23.8 million at the end of September. Netflix made $40.7 million, or 73 cents per share, in the final three months of last year. That compares with income of $47.1 million, or 87 cents per share, a year earlier.