Business briefs: Bailout costs could be as low as $87 billion
Published 5:40 pm Monday, April 26, 2010
Treasury Secretary Timothy Geithner is telling Congress that the administration believes the final cost of the government’s heavily criticized financial bailout effort could be as low as $87 billion. Geithner made the new estimate in a letter Friday to congressional leaders that was obtained by The Associated Press. A year ago, officials were estimating the bailout could cost as much as $500 billion. The new estimate says the biggest losses will occur from the government’s support of mortgage companies Fannie Mae and Freddie Mac, the help provided homeowners facing foreclosure and the assistance provided to American International Group.
Frontier stock rises 26 percent
Frontier Financial Corp.’s stock price soared 26 percent in trading Friday, ending the day at $2.98. The Everett-based parent company of Frontier Bank is operating under orders from state and federal regulators after being labeled “critically undercapitalized” earlier this year. The bank is seeking an investor to help improve its capital levels and had been given an April 15 deadline. No news was released Friday to explain the stock’s climb. More than two million shares were traded that day, about 12 times the usual trading volume of Frontier’s stock. Overall, the stock remains down from where it traded earlier this year. Shares were valued around $4 before increased regulator scrutiny in March.
Ford mounts recall for seat problems
Ford Motor Co. is recalling 33,000 midsize vehicles and sport utility vehicles in the United States to fix front seat recliners. The recall affects some versions of the 2010 Ford Fusion, Explorer, Explorer Sport Trac and 2010 Mercury Milan and Mountaineer with front seat manual recliners. The vehicles under recall were built from mid-December through early February. The recliner’s gears could have problems that would lead to the seat back and head restraint moving toward the rear in a crash, increasing the risk of injury. The government says the vehicles don’t comply with federal requirements for head restraints. Dealers will replace the manual seat recliners free of charge. Owners can call Ford toll-free at 866-436-7332. A Ford spokesman says there have been no accidents or injuries reported.
Port of Everett to offer tours of waterfront
The Port of Everett and the Everett Parks Department will offer five free tours on Everett’s working waterfront later this year. The tours are scheduled for Wednesdays from 6:30 to 8 p.m. June 23, June 30 and Sept. 8 and on Sunday, July 18 and Aug. 15 from 10 to 11 a.m. The tours will look at a number of topics, including trade, facilities and property development. They will involve a ferry that holds 75 people and will board at the port’s 10th Street Boat Launch. Call 425-257-8304 to check availability or to make reservations.
From Herald staff and news services
