October 1, 2013 in Business

Wells Fargo pays Freddie to settle mortgage claims

From Wire Reports

WASHINGTON – Wells Fargo & Co. has agreed to an $869 million settlement with Freddie Mac over claims on home loans it sold to the government-controlled mortgage finance company.

The agreement announced Monday by Wells Fargo involves mortgages sold to Freddie before January 2009. Wells said the amount of the agreement was adjusted to reflect credits for previous claims payments, resulting in a cash payment to Freddie of about $780 million. Freddie and its bigger sibling Fannie Mae demanded that Wells Fargo and other big banks buy back mortgages they sold that later soured in the housing bust.

San Francisco-based Wells Fargo said it reached the agreement with Freddie on Friday. Citigroup Inc. also agreed last week to pay $395 million to Freddie to settle similar claims.

Allegiant Air completes servicing of exit slides

LAS VEGAS – Allegiant Air says its fleet of MD-80 aircraft is back in service after an overhaul of emergency exit slides.

Company spokeswoman Jessica Wheeler said Monday that service was normal nationwide, with no delays or cancellations because of the maintenance work.

About 10 percent of Allegiant passengers endured cancellations for several days after the airline grounded its 52 MD-80s on Sept. 19 to check and service each exit chute. The planes seat 166 passengers.

Officials acknowledged missing a 2007 manufacturer’s recommendation to overhaul chutes every year instead of every three years.

The maintenance gap was discovered Sept. 16 after an emergency evacuation of an Allegiant flight in Las Vegas. No one was hurt.

American Airlines hiring pilots, flight attendants

FORT WORTH, Texas – American Airlines says it will hire 1,500 new pilots over the next five years and offer jobs to the remaining pilots who are still furloughed.

American said Monday that it would begin posting the new jobs this week and hire 45 to 50 pilots per month through next summer. It has already started hiring 1,500 flight attendants.

Parent AMR Corp. is trying to merge with US Airways Group Inc. and exit from bankruptcy protection. The merger is being held up by an antitrust lawsuit filed by the U.S. Department of Justice. A trial is set to begin Nov. 25.

AMR CEO Tom Horton said in a letter to employees that the company was preparing for the trial but would “remain open to discussions with the Justice Department regarding a settlement on appropriate terms.”

Also Monday, AMR said in a filing with the bankruptcy court that it earned $71 million in August, a reversal from a loss of $82 million a year earlier. Revenue rose 7 percent to $2.34 billion.

Nickelodeon begins offering kid-friendly Nick Radio

NEW YORK – Nickelodeon is getting into the radio business.

The children’s entertainment network has joined forces with Clear Channel Media and Entertainment to create its own station on Clear Channel’s online iHeartRadio.

Nick Radio launched Monday with “The Way” singer Ariana Grande – also star of Nick’s “Sam & Cat” – as featured guest DJ, along with another Nickelodeon act, Big Time Rush.

With its entry into radio, Nick Radio will provide some competition for Radio Disney, Disney’s terrestrial and Internet radio stations. Like Radio Disney, Nick Radio will feature kid-friendly Top 40 music, stars from its network and celebrity interviews.

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