Business in brief: BofA to repay TARP funds
Charlotte, N.C. – Bank of America Corp. said Wednesday it plans to repay its $45 billion in government bailout funds in the next few days, a move that will help the troubled bank recruit a new CEO.
Bank of America has been searching for a successor to CEO Ken Lewis since the bank announced in late September that he planned to retire on Dec. 31. But the bank, burdened with government restrictions and close oversight after accepting the Troubled Asset Relief Program funds, has so far been unable to sign a new chief executive.
“It removes the stigma that we’ve had as a company,” spokesman Bob Stickler said of the planned repayment.
Investors were relieved by the news and sent Bank of America stock up 3.3 percent in after-hours trading.
Associated Press
Fed more upbeat about economy
Washington – The economic recovery gained traction in late fall as shoppers spent a bit more and factories bumped up production. That assessment Wednesday by the Federal Reserve marked its most upbeat view since the economy tumbled into recession two years ago.
The Fed’s new snapshot of business barometers nationwide found that conditions have generally improved since the last report in late October.
Eight of the Fed’s 12 regions surveyed reported some pickup in activity or improved conditions, the Fed said. Those regions were: Boston, New York, Chicago, St. Louis, Minneapolis, Kansas City, Dallas and San Francisco.
The four other regions – Philadelphia, Cleveland, Richmond and Atlanta – described conditions as little changed or mixed.
Associated Press
Mall owner has deal with lenders
New York – General Growth Properties Inc. said Wednesday lenders have agreed to restructure about $9.7 billion in debt under a plan that will allow 92 of its properties to emerge from bankruptcy protection by the end of the year.
The nation’s second-largest mall operator will pay off loans that cover regional shopping centers, offices, community centers and related subsidiaries. Among General Growth’s holdings are three shopping malls in the Inland Northwest: NorthTown Mall, Spokane Valley Mall and Silver Lake Mall in Coeur d’Alene.
The Chicago-based company expanded aggressively during the real estate boom, amassing $27 billion in debt. As the real estate market imploded and financing dried up, General Growth was unable to refinance its short-term loans and in April became the largest U.S. real estate company to file for bankruptcy.
The restructuring plan will go before the Bankruptcy Court of the Southern District of New York on Dec. 15.
Associated Press