daily briefing

daily briefing

December 06, 2008

Sun Life Building purchase is completed

CSG Partners LLC completed the purchase of the Sun Life Building office tower in downtown Baltimore yesterday for $9.2 million from seller SLM Properties LLC, an investment entity of Asset Capital Corp. The 12-story, 170,000-square-foot building at 20 S. Charles St., built in 1966, was a key component of Charles Center, built in the 1960s to create an office district downtown. The Sun Life Insurance Co. owned and occupied the tower until the late 1980s. The building is now nearly 80 percent leased to law firms Blades & Rosenfeld and Schlachman, Belsky & Weiner and to the Y of Central Maryland. White Marsh-based CSG plans to start renovating the building early next year and add shops and food vendors to the first-floor lobby.

Lorraine Mirabella

Judge lets Circuit City keep paying ex-workers

RICHMOND, Va. : A U.S. bankruptcy judge has given Circuit City Stores Inc. permission to continue paying, through January, nearly 600 employees laid off at its headquarters before it filed for bankruptcy protection. Pending a final order, Judge Kevin Huennekens also gave the nation's second-biggest consumer electronics retailer the OK to break about 150 leases at locations where it no longer operates stores, which the company said costs $40 million annually. Circuit City was in court for a hearing on motions related to its Chapter 11 bankruptcy case. The company filed for protection last month as it faced pressure from vendors and consumers who aren't spending. Its Canadian operations also filed for similar protection. The committee representing the company's unsecured creditors had asked the judge to cease payroll payments and benefits to 588 employees laid off in early November.

Associated Press

Shareholders approve Merrill Lynch sale

CHARLOTTE, N.C. : Shareholders of Merrill Lynch & Co. and Bank of America Corp. approved yesterday the investment bank's sale to Bank of America, a move that will create the nation's largest financial services firm. At company headquarters in New York, Merrill shareholders voted to end the independence of an investment bank founded in 1914. Bank of America shareholders approved the deal later in the day. Most of those who spoke at the meeting down the street from the bank's headquarters disapproved of the merger, saying it was risky. A handful of shareholders spoke at Merrill's 45-minute meeting in New York's Financial District, with most calling the deal disappointing though necessary. Win Smith Jr., a former chairman of Merrill Lynch International and whose father was among Merrill's founders, singled out the "failed leadership" of ousted chief executive Stanley O'Neal and the board.

Associated Press

First Georgia is 23rd bank failure in U.S.

WASHINGTON : Regulators shut down First Georgia Community Bank yesterday, the 23rd U.S. bank failure this year. The Federal Deposit Insurance Corp. was appointed receiver of the Jackson, Ga., bank that had $237.5 million in assets and $197.4 million in deposits as of Nov. 7. The FDIC said all the failed bank's deposits would be assumed by United Bank of Zebulon, Ga. Its four branches will reopen today as offices of United Bank. United Bank also will buy about $60.6 million of First Georgia Community Bank's assets; the FDIC will retain the rest for eventual sale. The agency said depositors of First Georgia Community will continue to have full access to their deposits. The FDIC estimated that the resolution of First Georgia Community Bank will cost the federal deposit insurance fund $72.2 million.

Associated Press

Consumer borrowing unexpectedly declines

WASHINGTON : U.S. consumers unexpectedly cut back on their borrowing in October as the economy sunk deeper into recession. The Federal Reserve reported yesterday that consumer credit fell at an annual rate of 1.6 percent in October. That compared with a 3.1 percent growth rate logged in September and marked the deepest cutback since August. Economists expected consumers to boost their borrowing by about $2 billion in October from the previous month. Instead, consumer debt dropped by $3.5 billion to $2.58 trillion. The Fed's measure of consumer borrowing does not include any debt secured by real estate, such as mortgage or home equity loans. The cutback in October was led by a drop in demand for nonrevolving credit used to finance cars, vacations, education and other things. That type of credit fell at a rate of 2.5 percent, compared with a growth rate of 3.2 percent in September. Consumers' appetite for revolving credit, which is primarily credit cards, declined at a rate of 0.2 percent in October, down from a 3.1 percent growth rate logged in September.

Associated Press

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.