The government has received $25.6 million after selling warrants it held in Illinois-based Wintrust Financial Corp., the latest move to recoup the costs of the $700 billion financial bailout. Get the full story »
U.S. to release plan to phase out Fannie, Freddie
The White House will propose a path to wind down and eventually eliminate Fannie Mae and Freddie Mac and specify a range of options to replace the mortgage companies that have played a central role in the housing market for decades, according to people familiar with the matter.
The Obama administration is due to release its proposal for the future of the nation’s $10.6 trillion mortgage market as soon as Friday, outlining steps to gradually reduce the government footprint in the mortgage market. Together with federal agencies, Fannie and Freddie have accounted for nine of 10 new loan originations in the past year. Get the full story »
London, Toronto exchanges to merge
The London Stock Exchange and TMX Group, which operates the Toronto Stock Exchange, are merging. The LSE and TMX on Wednesday said they would combine in an all-share merger of equals, creating one of the world’s largest stock exchanges. Get the full story »
Feb. 9 at 5:30 a.m.
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Filed under: The day ahead in business
Reports: MBA Mortgage Purchase Index for week ending Feb. 4, 6 a.m.; Crude inventories for week ending Feb. 5, 9:30 a.m.
Local earnings: Acco Brands, Allstate
Other major earnings: Coca-Cola, General Motors, IntercontinentalExchange, MetLife, Sanofi-Aventis, Willis Group Holdings
Zillow: 38% of local single-family homes underwater
Almost two of every five owners of single-family, detached homes in the Chicago area were underwater on their mortgage in December, an all-time high and far outpacing national trends, according to data to be released by Zillow.com Wednesday.
The realty Web site found that 38.6 percent of all single-family detached homes with a mortgage had negative equity, meaning homeowners owed more on the homes than the properties were worth in the fourth quarter, compared with 32.9 percent in the third and 28.3 percent a year earlier. Nationally, the negative equity rate was 27 percent in the fourth quarter, up from 23.2 percent in the third quarter. Get the full story »
Aircell adds another $35M in private equity
Itasca-based Aircell, a provider of in-flight Internet services, says it has raised an additional $35 million from its private-equity investors and management.
That brings its total raised since 2006 to more than $500 million. Its investors include Ripplewood Holdings and Blumenstein Thorne Information Partners.
Read the announcement.
byerak@tribune.com
IRS offers new amnesty to offshore tax cheats
Wealthy tax evaders with assets stashed offshore can come clean with U.S. authorities under a new amnesty program with reduced penalties, the government said Tuesday.
“It gives people a chance to come in before we find them,” Internal Revenue Service Commissioner Doug Shulman said. The new effort follows a 2009 amnesty program, which lured 15,000 taxpayers with hidden accounts. Get the full story »
CEO says Northern Trust takeover unlikely
The chief executive of Northern Trust Corp., which has been mentioned as a possible takeover target, said chances are “quite good” that Chicago’s biggest locally headquartered bank will remain independent.
Speaking Tuesday before the CFA Society at the Standard Club in Chicago, CEO Frederick Waddell fielded a question from the audience about whether the company might be an acquisition target. Through much of 2010, its stock underperformed and its key U.S. rivals dwarf Northern in a major business segment. Get the full story »
Black-owned businesses grow in number, not size
While the number of black-owned businesses are on the rise, 94 percent of them have no paid employees, according to data from the U.S. Census Bureau’s Survey of Business owners released Tuesday.
At the same time, 87 percent of those businesses pull in less than $50,000 per year in revenue. Get the full story »
Discover to buy Allstate bank deposits
Allstate Corp. and Discover Financial Services said they had entered an agreement in which Discover will buy substantially all of Allstate’s bank deposits.
The companies called the deal a “multiyear distribution and marketing agreement.” As part of the agreement, Allstate agents and affiliates will offer personal savings and money-market accounts as well as other financial services to their customers through Discover. Get the full story »
Sara Lee gives more breakup details; shares rise
Sara Lee's Ball Park franks on display at a grocery story, Jan. 28, 2011. The company is splitting into two public ones. (AP Photo/Paul Sakuma)
On the same day that Sara Lee Corp. reported second-quarter earnings, its executives attempted to clarify an announcement made in January that Sara Lee plans to split into two publicly traded companies early next year. The company’s shares rose 2 percent in midday trading.
The Downers Grove-based maker of cheesecake, Jimmy Dean sausages and other food products reported net income of $880 million, or $1.37 per share, for the quarter that ended on Jan. 1, up from $371 million, or 53 cents per share, a year earlier.
Last month, Sara Lee announced that its North American Retail and North American Foodservice business would be spun off, keeping the company’s name and remaining in Downers Grove. The International Beverage and International Bakery divisions will constitute a second company under the working name of CoffeeCo. CoffeeCo is expected to remain in the U.S. at first because of tax considerations. Get the full story »
Dell prepares Windows tablet in mobile push
Dell Inc. showed off a tablet device for business users that runs Microsoft’s Windows software, as the personal computer company continues to push aggressively into the mobile market.
Though many analysts believe the current version of Windows is not a good fit for touchscreen tablets, Dell said its commercial customers are looking for the familiarity and security of the Microsoft environment in a more portable package. Get the full story »
U.S. retail gasoline demand falls 3%
U.S. retail gasoline demand fell last week for the first time in a month after a massive snowstorm hit a large swath of the country, clogging traffic and curbing demand.
Average gasoline demand fell 3 percent to 8.73 million barrels per day in the week to Feb. 4. Get the full story »
McDonald’s rebounds in Europe; shares up
McDonald’s reported a stronger-than-expected sales rebound in January in Europe, its biggest market for revenue, sending its shares up nearly 3 percent in midday trading.
Sales at restaurants in Europe open at least 13 months jumped 7 percent last month, well above the 3.7 percent analysts had expected.
This was also a significant improvement from December, when sales in Europe fell 0.5 percent, rattling investors who worry that austerity measures will cut into spending in the region. Get the full story »
