QUOTE OF THE DAY
“What you see happening on Jan. 10 is the most sweeping re-regulation of mortgage finance that I’ve seen.”
Pete Mills, Mortgage Bankers Association senior vice president of residential policy Article, 1D
215,000 ditch Time Warner TV in quarter
Time Warner Cable Inc. lost 215,000 video subscribers in the fourth quarter amid competition with phone carriers and the challenge of convincing younger consumers to pay for TV.
The defections raised Time Warner Cable’s customer losses for the year to about 825,000, up from 530,000 in 2012. The company added 55,000 high-speed Internet subscribers and 15,000 phone users in the fourth quarter, Chief Financial Officer Artie Minson said Wednesday at an investor conference.
The competition for video viewers has made Time Warner Cable a potential takeover target for Charter Communications Inc. and other cable carriers looking to gain size in the industry. New York-based Time Warner Cable is the second-largest U.S. cable provider, trailing only Comcast Corp.
Charter may unveil a bid for Time Warner Cable as soon as this week, people with knowledge of the matter have said. The company may face competition from Comcast and Cox Communications Inc. to acquire the carrier.
Comcast said Tuesday it added pay-TV customers in the fourth quarter, its first gain in more than six years.
Lawyer: Bank fired trader to avoid bonus
Bank of America Corp. fired a trader who made three quarters of the profits of its Asian distressed debt trading group to avoid paying the performance bonus she was entitled to, her lawyer said.
Sunny Tadjudin is claiming $3.7 million based on the average of 16.6 percent of her profit contribution she received in bonuses for 2002 to 2004, attorney Graham Harris said Tuesday on the first day of a trial at the Hong Kong High Court.
Tadjudin, fired in August 2007 for failings including poor communication, received lower bonuses than she deserved in 2005 and 2006 because of arbitrary performance reviews and no bonus in 2007 despite generating 76 percent of the group’s $28.6 million in profits in the 30-month period, Harris said. The 50-year-old woman won the right to a trial in 2010 when a lower court’s dismissal of her claim was overturned.
“She was delivering profits,” Harris said. The bank’s “scandalous and unconscionable conduct,” breached implied terms of her employment contract, he said. “She was entitled to be paid bonuses, which represented her profits.”
Mark Tsang, a Hong Kong spokesman for the Charlotte, N.C.-based bank, declined to comment on the case.
- Bloomberg News
On optimistic note, Greece takes EU helm
ATHENS, Greece - Greece’s prime minister and the head of the European Commission are striking an optimistic note as the country assumes the European Union’s rotating six-month presidency, with both underlining how far the financially stricken nation has come in overhauling its economy.
Prime Minister Antonis Samaras stressed Wednesday that Greece has made “great sacrifices” and is now leaving behind the crisis. Greece has been dependent on rescue loans from other European countries and the International Monetary Fund since 2010, and has had to impose harsh austerity measures in return.
Samaras stressed that Athens would focus on economic recovery, fighting unemployment and tackling security issues, including migration, during Greece’s presidency.
For his part, European Commission President Jose Manuel Barroso stressed that financial rescue packages work, and he urged the Greek government and people to stick to their changes. He said Greece is expected to emerge from its recession this year.
Delta overhauling seats, overhead bins
ATLANTA - Delta is putting new seats and bigger overhead bins on many of the planes it flies within the U.S.
Delta said the project will cover 225 planes. Passengers will have electrical power at every seat in those planes, and most of them are getting bigger overhead bins.
The new interiors are going on Delta’s Boeing 757-200s, 737-800s, and planes in the Airbus A-320 family.
Delta said it will spend $770 million on the three-year project.
- The Associated Press
U.K. mint runs dry of ’14 gold coins
The U.K.’s Royal Mint said Wednesday it has no more 2014 Sovereign gold coins “due to exceptional demand.”
The mint said it expects to have stocks of the coins again by the end of the month. Gold dropped to a six month low of $1,182.27 an ounce in London on Dec. 31, capping the largest annual decline since 1981.
“Since the dip in the price of gold we have seen increased demand for our gold bullion coins from the major coin markets, and this presently shows no sign of abating,” the mint said in the statement. “The Royal Mint continues to supply to its customers and is increasing production to accommodate the higher demand.”
- Bloomberg News
Ford CEO exits race to lead Microsoft
Alan Mulally, chief executive officer of Ford Motor Co., said he plans to stay with the No. 2 U.S. automaker through 2014 and won’t leave for Microsoft Corp., underscoring the challenge of finding a new CEO to run the world’s largest software-maker.
“I would like to end the Microsoft speculation because I have no other plans to do anything other than serve Ford,” Mulally, 68, said in an interview. Mulally said he will stay with Ford through at least this year. Jay Cooney, a spokesman, confirmed the remarks.
Mulally’s candidacy to lead Microsoft had faded amid concerns about his age and lack of technology experience, people with knowledge of the matter said last month.
Other candidates in the mix for the CEO job have included Microsoft’s cloud computing chief Satya Nadella, Executive Vice President Tony Bates and former Nokia Oyj CEO Stephen Elop, people familiar with the search have said.
- Bloomberg News
Business, Pages 24 on 01/09/2014