An extensive investigation of embattled Fannie Mae points to its former finance chief and controller as mainly responsible for accounting failures at the mortgage giant, which is struggling to emerge from an $11 billion accounting loss, a report released Thursday said.
Japan trade deficit rated as positive
Japan posted its first trade deficit in five years in January as soaring oil prices and revived domestic spending boosted imports, the government said Thursday. Analysts and government officials said the trade deficit, $935.9 million, wasn’t a negative sign for Japan’s economy because it was rooted in strong domestic demand.
HealthSouth investors get offer
Investors who sued over a huge fraud at HealthSouth Corp. would get $445 million in stock and cash under a proposed settlement that the rehabilitation chain said resolves its thorniest legal problems stemming from the scheme. The Birmingham, Ala.-based company will pay $215 million in common stock and warrants under the global settlement proposal announced Thursday, and insurance companies will pay another $230 million. HealthSouth would also hand over 25 percent of anything it gets in a civil suit against founder Richard Scrushy.
Nordstrom reports strong earnings
Nordstrom Inc. on Thursday reported a 36 percent increase in fourth-quarter profits, beating Wall Street expectations. But the upscale Seattle clothing retailer offered a tepid outlook for the current quarter. Nordstrom reported earnings of $190.4 million, or 69 cents a share, for the three months ended Jan. 28. That compares with $140 million in the same period a year earlier.
KFC message hidden in TV ad
KFC wants to share a secret. No, not that secret. Col. Sanders’ herbs-and-spices recipe for Kentucky Fried Chicken is still safely locked away, but the chain unveiled a new TV ad on Thursday that allows viewers to crack a hidden message if they play the spot back slowly on a digital video recorder or VCR. The gimmick is aimed at countering the rise of technology that enables television viewers to skip past commercials. For those savvy enough to solve the secret, the prize is a coupon for KFC’s new Buffalo Snacker chicken sandwich. The 99-cent Snacker debuted a year ago and is credited in KFC’s earnings rebound.
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