September 15, 2012 in Business

Missouri bank failure brings 2012 total to 42

From Wire Reports
 

WASHINGTON – Regulators on Friday closed a small bank in Missouri, bringing to 42 the number of U.S. bank failures this year.

The Federal Deposit Insurance Corp. said it seized Truman Bank, based in St. Louis.

The bank had about $282.3 million in assets and $245.7 million in deposits as of June 30.

Simmons First National Bank, based in Pine Bluff, Ark., agreed to assume Truman Bank’s deposits and purchase essentially all of the failed lender’s assets.

The FDIC and Simmons entered into a loss-share transaction on $117.8 million of Truman Bank’s assets.

The failure of Truman Bank, which had four branches, is expected to cost the deposit insurance fund $34 million.

Truman Bank is the second FDIC-insured institution in Missouri to fail this year.

U.S. bank closures are running at a slower pace than in 2011. Seventy banks had failed by this time last year.

SEC ends one probe of Avon Products

NEW YORK – Avon Products Inc.’s legal woes may finally be on the wane.

The direct-beauty product seller said in a regulatory filing late Thursday that the Securities and Exchange Commission has decided it won’t recommend any action against the company over whether Avon contacted analysts inappropriately during a separate bribery investigation.

The end of the investigation into analyst contacts is a plus for the company which is trying to turn around its financial performance as new CEO Sheri McCoy settles into the job.

But Avon, whose products include Skin So Soft lotion and mark makeup, is still dealing with wider probes into whether Avon paid bribes in China and other countries. The problems began in 2008, when it started to investigate possible bribery in China related to travel, entertainment and other expenses, and soon widened the probe to other countries.

The internal probe led to the New York company firing vice chairman and former chief financial officer Charles Cramb in January along with four other executives.

FDA issues alert on Mexican mangoes

WASHINGTON – The Food and Drug Administration is detaining mango imports from a Mexican packing house after the company’s mangoes were linked to salmonella illnesses in 15 states.

The FDA announced the import alert Friday against Agricola Daniella, a mango supplier with multiple plantations and a single packing house located in Sinaloa, Mexico. The alert means the United States won’t accept the imports unless the company can show testing that proves the mangoes are safe.

A California importer recalled the Daniella brand mangoes last month after they were linked by U.S. officials to dozens of illnesses around the country, most of them in California. The mangoes were sold at various U.S. retailers between July 12 and Aug. 29.

The federal Centers for Disease Control and Prevention said Friday that the illness count is now at 121. No deaths have been reported.

The Mexican government said an exhaustive study by Mexican authorities found no contamination at the packing house. Officials said they determined there was no connection between the Mexican product and the U.S. outbreak.

The most common symptoms of salmonella are diarrhea, abdominal cramps and fever within eight hours to 72 hours of eating a contaminated product. Salmonella can be life-threatening to some who have weakened immune systems.


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