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“Japan’s growth engine has been massive government spending.” Ryutaro Kono, BNP Paribas economist Article, 1D Bank of Ozarks buying Texas company

Bank of the Ozarks has agreed to buy Bancshares Inc.

of Houston for $23 million, the Little Rock bank said Monday.

Bancshares owns Omnibank, which operates eight offices, including three in Houston, one in San Antonio, two in Austin and one each in the Austin suburbs of Cedar Park and Lockhart.

Omnibank has $301 million in assets, $169 million in loans and $269 million in deposits.

Bank of the Ozarks already has a real estate lending office in Austin and plans to open a real estate office in Houston in the spring.

The purchase was announced after markets closed Monday. Bank of the Ozarks shares closed at $55.78, up 9 cents, in trading on the Nasdaq exchange.

Municipal-bond market shrinks 3.9%

The U.S. municipal bond market shrank at a 3.9 percent annual pace during the third quarter as state and local governments pared sales of new securities to finance public projects, according to the Federal Reserve.

The amount of municipal debt slid at an annual rate of $110 billion during the three months through September, according to quarterly data released Monday by the Fed.

The $3.69 trillion municipal bond market is on path to shrink for a fourth straight year, the longest stretch in almost seven decades, as government agencies are hesitant to borrow money amid concern that the economy may falter. States and cities are still recovering from the recession that ended in 2009, which led them to cut spending and fire workers when tax collections dropped.

The cutback in bond sales has helped prop up prices in the tax-exempt market, easing losses that have come from speculation that interest rates will rise as the economy recovers. Bond prices move in the opposite direction of interest rates.

10-year term asked in defrauding of dying

PROVIDENCE, R.I. - Federal prosecutors have asked a judge for a 10-year prison term for a Rhode Island lawyer who led a $46 million investment fraud that preyed on terminally ill people.

Ten years is the maximum allowed under a plea agreement signed by Joseph Caramadre, who pleaded guilty to wire fraud and conspiracy.

Prosecutors said in papers filed Monday that Caramadre deserved the sentence because of the nature of the crime and his lack of remorse. He’s scheduled to be sentenced next week.

Caramadre illegally used personal information from terminally ill people to purchase bonds and annuities that would pay out when a person died.

One of his employees also pleaded guilty.

  • The Associated Press

Reports: Fiat to spend on luxury models

Fiat SpA plans to invest as much as $12.3 billion on new models to end European losses in three years and revive nearly empty Italian factories, two people familiar with the matter said.

In addition to bolstering the upscale Maserati and Alfa Romeo marques with new “Made in Italy” models, the carmaker will focus the Fiat line on variants of the trendy 500 subcompact and the budget-oriented Panda small car, ditching a former best-seller, said the people, who asked not to be identified because the discussions are private.

“It’s a brave and historic move to abandon your roots,” said Roberto Verganti, a management professor at Milan Polytechnic and the author of the 2009 book Design-Driven Innovation. “Going upscale with cool, high-margin 500 and Alfa models is the only possible strategy to continue building cars in Italy.”

With the timing of Fiat’s sought-after merger with Chrysler Group LLC uncertain, Sergio Marchionne, who is chief executive officer of both carmakers, is under pressure to stem the Italian manufacturer’s losses in Europe.

While Fiat has previously said it aims to develop about 20 new models for Europe by 2016, including eight Alfa Romeos, the company has declined to comment on a revised European strategy until April.

  • Bloomberg NewsOppenheimer

trader fined for gouging

David Sirianni, Oppenheimer Holdings Inc.’s head municipal bond trader, was fined $100,000 and suspended for 60 days by the Financial Industry Regulatory Authority for overcharging customers.

Sirianni marked up bonds as much as 16 percent from July 2008 through June 2009, the authority said Monday in a statement. New York-based Oppenheimer also was ordered to pay a $675,000 fine and $246,000 in restitution.

The brokerage and the trader settled the case without admitting to the allegations, Wall Street’s self-regulator said in the statement.

“Finra has no tolerance for firms or individuals who charge customers excessive markups,” Thomas Gira, the authority’s head of market regulation, said in the statement.

The investigation involved 89 transactions in which the brokerage added more than 5 percent to the cost of the bonds, the authority said. Oppenheimer didn’t disclose the markups to its customers, according to the regulator.

Sirianni declined to comment when reached by phone.

Dennis McNamara, a lawyer for Oppenheimer, didn’t immediately respond to a message seeking comment.

  • Bloomberg News

McDonald’s U.S. sales slip in November

McDonald’s Corp.’s U.S. sales funk worsened in November as rivals lured away diners amid the choppy economic recovery.

Sales at U.S. stores open at least 13 months dropped 0.8 percent in November, Oak Brook, Ill.-based McDonald’s said in a statement Monday. Analysts projected a 0.3 percent gain, the average of 14 estimates from Consensus Metrix. Global same-store sales rose 0.5 percent. Analysts projected a 0.6 percent gain.

The world’s largest restaurant chain, which last year got 32 percent of revenue from its U.S. locations, has been revamping its menu and trying to improve service to attract Americans amid fierce competition. Burger King Worldwide Inc. recently introduced new items similar to McDonald’s fare, including barbecue rib sandwiches and Big King burgers. Taco Bell is selling breakfast foods and value packs of tacos.

  • Bloomberg News

Business, Pages 24 on 12/10/2013

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