Banner Corp., the parent company of Banner Bank and Islanders Bank, announced Friday that it has received $124 million from the U.S. Treasury Department as a part of the Treasury’s Capital Purchase Program. This funding marks Banner’s successful completion of the sale of $124 million in senior preferred stock, with a related warrant to purchase up to $18.6 million in common stock to the U.S. Treasury. The transaction is part of the Treasury’s program to encourage qualified financial institutions to build capital to increase the flow of financing to businesses and consumers and to support the U.S. economy.
Wal-Mart names new chief executive
Wal-Mart Stores Inc., the world’s largest retailer, unexpectedly announced Friday that its chief executive will retire in February and be replaced by the head of its international division. The surprise change in leadership right before the crucial holiday season comes as Wal-Mart fares well as people looking for bargains shop more at discounters — but also as it faces challenges with the new administration of President-elect Barack Obama, which may be friendlier to unions. Bentonville, Ark.-based Wal-Mart said Mike Duke, 58, vice chairman of its international division, will take the reins from Lee Scott, 59, effective Feb. 1. Duke also becomes a member of the board of directors immediately.
GM to make cuts, extend shutdown
General Motors Corp. will extend its holiday shutdown or make other production cuts at five factories as it deals with a continued U.S. auto sales slump and fights to stay solvent. Also Friday, the company announced changes at five other factories that could increase production of some models, all based on a volatile U.S. auto market that has slumped to a 25-year low. The changes won’t be the last, as cash-starved GM tries to conserve as much money as possible while awaiting congressional action on a bailout loan package for Detroit’s three automakers.
Boeing halts work at chopper plant
Production has been shut down at Boeing’s helicopter plant in suburban Philadelphia. Pennsylvania congressman Joe Sestak says he’s been told by a Boeing executive that a plastic cap was found in the fuel line of a V-22 Osprey fuselage. He says Boeing could not rule it out as a willful act, so it stopped production on its lines and notified defense officials. A disgruntled ex-Boeing worker admitted in court recently that in May he used his work-issued wire cutters to sever about 70 electrical wires running together from the cockpit to the main body of an H-47 Chinook.
From Herald news services
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