Published: Friday, November 6, 2009
Business Briefly: New federal lease plan may stall foreclosures
Can’t pay the mortgage? You still might be able to stay in your home. Government-controlled mortgage company Fannie Mae is going to give borrowers on the verge of foreclosure the option of renting their homes for a year. The change announced Thursday could give a temporary break to thousands of homeowners, but critics question whether it will only add to the mushrooming losses at the company, which has received billions in taxpayer money. The new Deed for Lease program will allow homeowners to transfer title to Fannie Mae and sign a one-year lease, with potential month-to-month extensions after that. It also helps save money because the lender does not need to complete the often-lengthy foreclosure process.
NFL package attracts DirectTV subscribers
Satellite TV operator DirecTV Group Inc. was one of the few pay-TV companies to gain subscribers in the third quarter, though earnings stayed steady because of the higher costs it incurred attracting and serving those new customers. DirecTV said Thursday that a marketing partnership with AT&T Inc. that began in February accounted for most of the increase in U.S. subscribers, but it likely also retained subscribers and gained new ones because of a perennial favorite, the NFL Sunday Ticket package that airs out-of-market games to football fans. DirecTV, which is controlled by media mogul John Malone’s Liberty Media Corp., has focused on attracting consumers who don’t mind paying more for quality TV as long as they get football and other packages they want.
Burlington Northern Santa Fe railroad purchase may hurt Berkshire’s rating
Fitch Ratings warned Thursday that Berkshire Hathaway Inc.’s $23.6 billion deal for Burlington Northern Santa Fe Corp. could overexpose Warren Buffett’s company to weaknesses in the economy at the expense of its more durable investments. The agency put Berkshire Hathaway rating’s under review for a possible downgrade in the wake of its announcement Tuesday that it will buy the rest of the railroad company based in Texas. Berkshire already owns a 22 percent stake in the railroad. Another big ratings agency, Standard & Poor’s, placed its Berkshire ratings under review to see if a downgrade was in order.
Borders to shutter more Waldenbooks
Borders Group Inc., the second-largest U.S. bookstore chain, said Thursday it would shutter more of its small-format Waldenbooks stores in January as it focuses on its more profitable superstores. The company is closing 200 Waldenbooks and Borders Express stores and cutting 1,500 jobs in January to make the chain more profitable. Borders, based in Ann Arbor, Mich., said the closings would leave about 130 stores in its Waldenbooks Specialty Retail unit. The company said the closing will not affect any Borders superstores or any of its mall kiosks, including 500 Day by Day Calendar Co. spots and other mall-based stores.
From Herald news services
NFL package attracts DirectTV subscribers
Satellite TV operator DirecTV Group Inc. was one of the few pay-TV companies to gain subscribers in the third quarter, though earnings stayed steady because of the higher costs it incurred attracting and serving those new customers. DirecTV said Thursday that a marketing partnership with AT&T Inc. that began in February accounted for most of the increase in U.S. subscribers, but it likely also retained subscribers and gained new ones because of a perennial favorite, the NFL Sunday Ticket package that airs out-of-market games to football fans. DirecTV, which is controlled by media mogul John Malone’s Liberty Media Corp., has focused on attracting consumers who don’t mind paying more for quality TV as long as they get football and other packages they want.
Burlington Northern Santa Fe railroad purchase may hurt Berkshire’s rating
Fitch Ratings warned Thursday that Berkshire Hathaway Inc.’s $23.6 billion deal for Burlington Northern Santa Fe Corp. could overexpose Warren Buffett’s company to weaknesses in the economy at the expense of its more durable investments. The agency put Berkshire Hathaway rating’s under review for a possible downgrade in the wake of its announcement Tuesday that it will buy the rest of the railroad company based in Texas. Berkshire already owns a 22 percent stake in the railroad. Another big ratings agency, Standard & Poor’s, placed its Berkshire ratings under review to see if a downgrade was in order.
Borders to shutter more Waldenbooks
Borders Group Inc., the second-largest U.S. bookstore chain, said Thursday it would shutter more of its small-format Waldenbooks stores in January as it focuses on its more profitable superstores. The company is closing 200 Waldenbooks and Borders Express stores and cutting 1,500 jobs in January to make the chain more profitable. Borders, based in Ann Arbor, Mich., said the closings would leave about 130 stores in its Waldenbooks Specialty Retail unit. The company said the closing will not affect any Borders superstores or any of its mall kiosks, including 500 Day by Day Calendar Co. spots and other mall-based stores.
From Herald news services
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