Correction: Mark McLarty is chairman of McLarty Automotive Group. His first name was omitted in this story about McLarty Automotive Group purchasing Frank Fletcher Honda of Columbia, Mo.
All 31 big banks pass Fed 'stress test'
WASHINGTON -- All of the nation's 31 largest banks are adequately fortified to withstand a severe U.S. and global recession and keep lending, the Federal Reserve said Thursday.
Results of the Fed's annual "stress tests" show that as a group, the 31 banks are stronger than they have been at any time since the 2008 financial crisis struck, thanks to a steadily recovering economy. The results build on positive outcomes from last year's tests.
The Fed will announce next week whether it will approve the banks' plans to issue dividends or repurchase shares.
The banks tested included JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc. and Wells Fargo and Co. -- the four biggest U.S. banks by assets.
The Fed has conducted stress tests of the largest U.S. banks since 2009.
-- The Associated Press
McLarty buys Fletcher Honda in Missouri
McLarty Automotive Group has acquired Frank Fletcher Honda of Columbia, Mo.
Terms of the deal were not disclosed. Frank Fletcher Auto Group is based in Arkansas and operates dealerships in the state and in Missouri.
McLarty Automotive Group was founded in Arkansas nearly 100 years ago and operates dealerships in four countries with a combined $5 billion in annual revenue. In Arkansas, it purchased the top Honda dealer last year, which now operates as Landers McLarty Honda.
"Columbia is a dynamic economy with a wonderful local community, and Honda is a great brand with fantastic products," said McLarty. "We are excited by the opportunity to grow Columbia Honda from the strong foundation that exists today."
Stephen Nagel has been named as general manager and partner of the Columbia dealership.
-- Chris Bahn
W. Memphis lands concrete-form firm
EFCO Corp. is opening a refabrication manufacturing facility in West Memphis, filling the city's final vacant industrial space.
The company, which is based in Des Moines, Iowa, announced its plans to move into a 130,000-square-foot facility at the end of South Avalon Street. The plant will produce standard and custom-built form work and shoring for concrete construction work, primarily serving the south-central region.
"We are pleased to welcome EFCO to our community -- we know they had many options to consider in establishing a regional center," West Memphis Mayor William Johnson said in a statement.
Doug Drees, EFCO Corp.'s vice president and general counsel, said the company plans to open operations this spring with about 10 full-time employees.
EFCO Corp. has supplied projects like the World Trade Center Freedom Tower in New York, the City Center in Las Vegas and the University of Alabama's football stadium expansion. Ward Wimbish, West Memphis economic development director, said the company's move to the final vacant industrial space continues to "reinforce our position as the low-cost operator in the area."
-- Robbie Neiswanger
30-year mortgage rate dips to 3.75%
WASHINGTON -- Average long-term mortgage rates have fallen for the first time in four weeks and remain near historic lows reached in May 2013.
Mortgage giant Freddie Mac said Thursday that the national average for a 30-year, fixed-rate mortgage fell to 3.75 percent from 3.80 percent last week.
The rate for a 15-year mortgage, popular with homeowners who refinance, fell to 3.03 percent from 3.07 percent last week.
A year ago, the average 30-year mortgage stood at 4.28 percent, and the 15-year mortgage at 3.32 percent.
To calculate average mortgage rates, Freddie Mac, the Federal Home Loan Mortgage Corp., surveys lenders across the country at the beginning of each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for a 30-year mortgage was 0.6 point, unchanged from last week. The fee for a 15-year mortgage also remained at 0.6 point.
-- The Associated Press
'As Seen on TV' firm settles charges
NEW YORK -- The company behind Snuggie, Perfect Bacon Bowl and other "As Seen on TV" products has agreed to pay $8 million to settle charges that it deceived customers.
The Federal Trade Commission says Allstar Marketing Group promised customers buy-one-get-one-free promotions but they were still charged for the items in the form of high shipping costs.
Allstar will pay $7.5 million to the FTC to create a fund that will be used for customer refunds. The other $500,000 will be paid to the New York attorney general's office for penalties, costs and fees.
Allstar, based in Hawthorn, said it has already made changes to its business to make costs easier to understand.
-- The Associated Press
AbbVie to buy leukemia drug's maker
AbbVie will spend about $21 billion to buy fellow drugmaker Pharmacyclics in a bid to add another major revenue producer to a product portfolio that already includes the world's top-selling drug, the anti-inflammatory Humira.
The deal will net the North Chicago, Ill., drugmaker the blood-cancer treatment Imbruvica, which Pharmacyclics makes and then markets with Johnson & Johnson's Janssen Biotech. AbbVie executives told analysts Thursday morning that their company could reap more than $7 million in annual sales from Imbruvica in a few years.
Imbruvica is approved in more than 40 countries and treats three different types of blood cancers including chronic lymphocytic leukemia, which is the most common leukemia in adults. The once-a-day capsule works by blocking a protein that allows the cancer to multiply and spread.
AbbVie's winning bid amounted to an offer of $261.25 for each Pharmacyclics share.
-- The Associated Press
Maine fishermen's 2014 a record $585M
ROCKPORT, Maine -- Maine's fishermen hauled in a huge catch worth a state record $585 million last year, buoyed by an unprecedented surge in the value of the state's beloved lobsters.
State fishery officials told The Associated Press on Thursday that the total value of the catch jumped $44 million from 2013 to 2014. Lobsters accounted for more than $456 million of the total in 2014, an all-time high according to state data that goes back to the 19th century. Lobsters grew in value by more than $86 million from 2013.
Maine accounts for more than 80 percent of all U.S. lobster, and fishermen and regulators said 2014 was an especially lucrative year for the New England staple. The total catch of more than 123 million pounds of lobster was slightly off the record years of 2013 and 2012, but value jumped, fueled by growing Asian imports and a summer boom in catch that overlapped with domestic demand. The growth in lobster value also meant prices to consumers rose in some restaurants and fish markets.
A $1.8 million increase in the value of Maine's resurgent scallop fishery also helped, state officials said. The state has implemented new management methods for scallops since the fishery fell to an all-time low in catch in 2005.
-- The Associated Press
Statoil to pay $2M over illegal N.D. well
FARGO, N.D. -- A Norway-based oil company that illegally operated a well in North Dakota that was established by another company has agreed to pay a nearly $2 million settlement to avoid legal action in the case.
Authorities say the well was drilled in December 2011 on unleased federal land about two weeks after Statoil Oil & Gas Services Inc. acquired Brigham Oil & Gas LP.
An investigation that began two years later discovered that Statoil had produced and sold federally owned oil and natural gas valued at nearly $2 million.
U.S. Attorney Timothy Purdon says Statoil's cooperation in the investigation and willingness to settle the case without a lawsuit showed "good corporate citizenship."
A Statoil spokesman could not be immediately reached for comment.
-- The Associated Press
Call center in Louisiana fires 100 more
MONROE, La. -- More Wingspan employees in Monroe were given layoff notices from the company this week. But the city's economic development officer said another unidentified call-center company has made inquiries about locating an operation in Monroe.
Wingspan issued layoff notices to more than 100 employees Tuesday. That followed a layoff at the Monroe center last fall.
The News-Star reports that it was unclear how many, if any, Wingspan employees will remain in Monroe.
Wingspan's Guy Davis, a senior vice president, said in a statement the company did not have additional projects for local employees to move to and would be reducing the staff in Monroe, effective April 30.
Dwight Vines, Monroe's economic development officer, says another call-center company is considering Monroe although no deal has been struck.
-- The Associated Press
Business on 03/06/2015