BUSINESS BRIEFS
Fed hires former Bear Stearns exec
Associated Press
WASHINGTON — The former chief risk officer at investment bank Bear Stearns Cos., which nearly collapsed in March, is now a senior official of the Federal Reserve division that supervises U.S. banks.
Michael Alix, who worked at Bear Stearns for 12 years and was its senior risk manager since 2006, was named a senior vice president in the bank supervision group of the Federal Reserve Bank of New York, according to an announcement by the Fed. The appointment is apt to raise questions because of the key role Alix played at Bear Stearns and given the Federal Reserve's role in Bear Stearns' sale to JPMorgan Chase & Co. after its breathtaking slide.
BOEING DELAYING TEST FLIGHT OF 787
Boeing Co. said yesterday the first test flight of its long-delayed 787 jetliner has been postponed until next year due to an eight-week strike by union workers.
The Chicago-based airplane maker had scheduled the inaugural flight of the next-generation passenger jet for the fourth quarter of this year.
But Boeing spokesman Jim Proulx said the strike, which started Sept. 6 and forced the company to temporarily shut down its commercial aircraft business, had pushed back the test flight to an unspecified time next year.
OIL PRICES CLIMB ABOVE $70 AGAIN
HOUSTON — Oil prices surged above $70 a barrel yesterday in the final hours of a two-year U.S. presidential campaign, mirroring global stock markets that strengthened from Asia to Europe. A weaker dollar helped too.
Light, sweet crude for December delivery rose $6.62 to settle at $70.53 a barrel on the New York Mercantile Exchange after rising as high as $71.77.
As the pace of industry has slowed and businesses consume less crude, the price of oil has fallen $30 from just over a month ago. The price of retail gasoline dipped below $2.40 yesterday for the first time since early in 2007.
FCC INVESTIGATING CABLE PRICE POLICY
PHILADELPHIA — The Federal Communications Commission has opened an investigation into the pricing policies of major cable operators and Verizon Communications Inc.
The FCC wrote on Oct. 30 to cable operators including Comcast Corp., Time Warner Cable Inc., Cox Communications Inc., Charter Communications Inc., Cablevision Systems Corp., Bright House Networks, Suddenlink Communications, Bend Cable Communications, GCI Company, Harron Entertainment and RCN Corp. Verizon, which offers pay-TV services with FiOS, also was included.
HARTFORD TO CUT WORKFORCE BY 2%
CHARLOTTE, N.C. — Hartford Financial Services Group Inc. said it will cut 500 jobs, or about 2 percent, of its total workforce this month, citing losses in its investment portfolios and declining revenue.
The Hartford, Conn.-based insurer employs about 31,000 people.
After reporting disappointing third-quarter results last week, the company said it would slash jobs and other expenses to save $250 million in annual costs by the end of 2009. The company reported a loss of $2.6 billion, or $8.74 per share, compared with a profit of $851 million, or $2.68 per share, a year ago.
ARCHER DANIELS PROFIT DOUBLES
NEW YORK — Archer Daniels Midland Co. said yesterday its fiscal first-quarter earnings more than doubled, beating Wall Street estimates as the company benefited from lower commodity prices and higher selling prices.
Its shares rose $3.22, or 15.3 percent, to close at $24.33.
The Decatur, Ill., based food processor and ethanol producer said profit in the quarter ended Sept. 30 rose to $1.05 billion, or $1.63 per share, up from $441 million, or 68 cents per share, last year.
