UBS to pay states $68M in settlement
HARTFORD, Conn. -- Swiss bank UBS has agreed to pay $68 million to settle a multistate investigation into the bank's role in manipulating an interest rate used to price everything from credit cards to mortgages, officials said Friday.
It is the latest of several bank settlements of charges related to the manipulation of the London Interbank Offered Rate, better known as Libor. UBS has paid more than $1.5 billion in fines and penalties to U.S. and European authorities for its manipulation of Libor.
The investigation involved attorneys general of 40 states. The states previously reached Libor-related settlements with Barclays, Deutsche Bank and CitiBank, collecting nearly $500 million.
Libor is set every day and is a widely quoted interest rate used to price a myriad of financial instruments. The interest rates on credit cards typically use Libor as a benchmark.
"Our multistate investigation will continue in order to hold accountable those other banks which harmed consumers in Connecticut and across the country," Connecticut Attorney General George Jepsen said.
-- The Associated Press
Report: Recalled air bags still on roads
DETROIT -- More than three years after the government took over management of recalls involving dangerous Takata air bag inflators, one third of the recalled inflators still have not been replaced.
That's according to an annual report on the recalls released late Friday by the government and a court-appointed recall monitor.
The report touts progress made this year by 19 automakers involved in the recalls, with recall repair rates across all companies increasing 30 percent during the year, according to the National Highway Traffic Safety Administration.
But the report by monitor John Buretta says 16.7 million faulty inflators out of 50 million under recall have yet to be replaced. And 10 million more inflators are scheduled to be recalled in January.
Safety advocates said the completion rate should be far higher given the danger associated with the inflators.
The Takata devices use the chemical ammonium nitrate to create a small explosion that inflates air bags. But inflators can explode with too much force, blowing apart a metal canister and hurling shrapnel at drivers and passengers. At least 23 people have been killed worldwide and hundreds injured due to the problem. The recalls forced Takata to seek bankruptcy protection and sell most of its assets to pay for the fixes.
The National Highway Traffic Safety Administration and the monitor are urging people to go to nhtsa.gov/recalls or AirbagRecall.com to find out if their air bags have been recalled. Owners will need to key in their 17-digit vehicle identification number.
-- The Associated Press
Ford recalls F-series trucks over fire risk
DETROIT -- Ford is recalling more than 874,000 F-Series pickups with engine block heaters in the U.S. and Canada because they can catch fire.
The recall covers certain F-150s from the 2015 through 2019 model years, as well as the 2017 through 2019 F-250, 350, 450 and 550.
The company says in documents posted Friday on the U.S. National Highway Traffic Safety Administration website that water and contaminants can get into the heater cable and cause corrosion. That can cause electrical shorts and possible fires. Engine block heaters warm the engines so they can start and warm up faster in extreme cold temperatures.
The company says the risk of fire happens only when the block heater cable is plugged into an electrical outlet.
Ford has received three reports of fires in Canada, but none in the U.S. Minor property damage was reported in one incident, but there haven't been any reports of injuries, Ford said in a statement.
-- The Associated Press
Adding CBD to food still illegal, FDA says
SEATTLE -- The hemp industry still has work ahead to win legal status for hemp-derived cannabidiol, or CBD oil. The head of the Food and Drug Administration says adding CBD to food or dietary supplements is still illegal.
President Donald Trump signed a farm bill Thursday designating hemp as an agricultural crop. The same day, FDA Commissioner Scott Gottlieb issued a statement saying CBD is a drug ingredient and therefore illegal to add to food or supplements without approval from his agency.
Courtney Moran, a lobbyist for Oregon hemp farmers, says she plans to work with U.S. Sen. Ron Wyden, an Oregon Democrat, to nudge the FDA toward greater acceptance of CBD.
CBD is a non-psychoactive compound found in hemp, a type of cannabis plant.
-- The Associated Press
Nike soars as earnings top projections
Nike Inc. surged the most since June after its second-quarter results soared past projections, particularly in its two most important regions: North America and Greater China.
Domestically, the world's largest sportswear company posted its third-straight quarter of growth. That sustained momentum is a critical benchmark for investors. Nike was previously in a yearlong slump at home, letting rival Adidas AG make inroads.
The earnings report was Nike's first to include the impact of its controversial ad campaign featuring quarterback-turned-activist Colin Kaepernick. The inclusion of Kaepernick in the line of "Just Do It" ads initially rankled investors, though they eventually applauded the move. Parker has said that the ads drove an uptick in traffic and engagement.
Nike shares gained 7 percent on Friday and closed at $72.37.
-- Bloomberg News
Sprint to pay $330M to settle tax suit
ALBANY, N.Y. -- New York state officials say Sprint will pay $330 million to settle a lawsuit that accused the telecommunication company of dodging more than $100 million in state and local taxes.
Attorney General Barbara Underwood and Acting Tax Commissioner Nonie Manion said Friday that the agreement resolves a tax enforcement case brought in 2011.
The suit said Sprint violated the New York False Claim Act for nearly a decade by knowingly failing to collect and remit sales taxes owed on flat-rate wireless calling plans sold to New Yorkers.
Sprint spokesman Lisa Belot says the Overland Park, Kansas-based company disagrees with the state's characterizations but is pleased with the settlement and believes it's in Sprint's best interests.
State officials say a whistleblower in the case will receive nearly $63 million of the settlement.
-- The Associated Press
Business on 12/22/2018