JPMorgan suspends stock buyback plans
NEW YORK – JPMorgan Chase is suspending plans to buy back its own stock, a little over a week after the bank posted a large trading loss.
The largest U.S. bank by assets disclosed the $2 billion trading loss on May 10 in a hastily called conference call with investors and journalists.
The loss from an ill-timed trade on so-called credit derivatives has rattled investor confidence in JPMorgan Chase, leading to a 20 percent decline in the value of the stock since the disclosure, lopping $30 billion off the market value.
CEO Jamie Dimon said JPMorgan will continue to pay its quarterly dividend of 30 cents a share. But it will suspend plans to buy back shares because the bank is preparing for new international regulations that force banks to hold more capital to prepare for economic downturns.
Campbell’s boosting condensed soup price
LOS ANGELES – Campbell Soup Co. will raise prices on its condensed soups by 5 percent in June as the company tries to turn itself around amid sliding profits.
High production costs and continued inflation are to blame for the price increase, according to Campbell Senior Vice President B. Craig Owens in a conference call with analysts.
Lettuce grower extends salad recall nationwide
SALINAS, Calif. – A California lettuce grower has expanded a recall of some bagged salads after routine sampling detected listeria contamination. No illnesses have been reported.
The voluntary recall by River Ranch Fresh Foods of Salinas initially included lettuce shipped to California and Colorado. The company said Monday it had expanded the recall to the entire nation.
The bagged salads are sold under the names River Ranch, Farm Stand, Hy-Vee, Marketside, Shurfresh, The Farmer’s Market, Cross Valley, Fresh n Easy, Promark and Sysco.
The recalled retail and food service salad bags have “best by” dates between May 12 and May 29 or Julian dates of 118 and 125. The code date is typically located in the upper right-hand corner of the bags.
Symptoms of listeria infection include high fever, headache and neck stiffness.
POM made deceptive health claims, judge rules
WASHINGTON – A federal administrative judge ruled Monday that POM Wonderful used deceptive advertising when claiming that its pomegranate juice could treat or prevent heart disease, prostate cancer and other illnesses.
Chief Administrative Law Judge Michael Chappell sided with federal regulators and ordered POM to halt all claims of health benefits and performance for its beverage.
The Federal Trade Commission filed a complaint against POM and its parent company, Los Angeles-based Roll International Corp., in September 2010.
Chappell rejected an argument that the company should have to provide evidence from rigorous medical trials, saying instead it could provide “competent reliable scientific evidence.”