Hostess warns 250 state employees of possible layoffs

Hostess Brands has warned its 250 employees in Washington they could lose their jobs in 60 days.

The Texas-based maker of Twinkies and Wonder bread is in Chapter 11 bankruptcy and trying to renegotiate its contracts with the Teamsters and bakery workers unions.

A notice filed with the state Employment Security Department this week said among the areas of the state that could be affected are Seattle, with 111 Hostess employees; Lakewood, with 53 employees; Everett, with 15 workers; and Spokane, with 14.

Other affected sites are in Bellingham, Bremerton, Tumwater, Longview, Moses Lake and Yakima. Those are bakery or driver jobs.

The same warning was issued by Hostess to its U.S workforce of more than 18,000, the Wall Street Journal reported.

Fannie Mae reports first net income gain since takeover

WASHINGTON – U.S. mortgage giant Fannie Mae reported its first net income gain since it was taken over by the government during the 2008 financial crisis.

Fannie said Wednesday that it earned net income attributable to common stockholders of $2.7 billion in the January-March quarter. Instead of seeking additional aid from taxpayers, the company will pay a dividend of $2.8 billion to the Treasury Department.

That compares with the same quarter one year ago when Fannie reported a net loss of $6.5 billion.

The company was able to report the gain mostly because it had lower expenses for its losses. Two key reasons for that: Home price declines have slowed and fewer mortgages are in serious delinquency.

Fed approves of Chinese bank purchasing U.S. bank

WASHINGTON – The Federal Reserve has for the first time given approval for a large Chinese bank to purchase a U.S. bank. It also gave approval to two other large Chinese banks to expand their operations in the United States.

The Fed board announced Wednesday it was approving the application of the Industrial and Commerce Bank of China Limited, China’s largest bank, and two other Chinese firms to purchase The Bank of East Asia U.S.A., located in New York City.

The Fed also approved an application by the Bank of China to set up a branch in Chicago and an application by the Agricultural Bank of China Limited to establish a branch in New York City.

All three applications were approved after high-level talks last week between the United States and China.

Treasury Secretary Timothy Geithner said at the conclusion of the talks Friday that China had made “important steps” that would translate “into greater opportunities for U.S. workers and companies.”

Small claims judgment won by Honda owner overturned

LOS ANGELES – A judge overturned a nearly $10,000 small claims judgment against American Honda Motor Co. that was won by a car owner who said the automaker misrepresented that her hybrid Civic could get 50 miles per gallon, according to a ruling released Wednesday.

Superior Court Judge Dudley W. Gray II ruled Tuesday on Honda’s appeal of a court commissioner’s award of $9,867 to Heather Peters.

Gray’s ruling found, among other things, that Peters had standing to bring the case in state court, but it’s actually federal regulations that govern fuel economy ratings and related advertising claims.

The ruling by Gray will not have a direct effect on any other cases. However, a legal observer said it could pose a challenge to those pursuing small claims actions.