QUOTE OF THE DAY “I’m a little dismayed at those in markets that are saying they’re surprised by this.” James Bullard,
Federal Reserve Bank of St. Louis president, on the
Fed’s decision Wednesday to delay a tapering of its bond-buying program Article, 1DAirlines seek U.S. files on past mergers
American Airlines and US Airways Group Inc. are seeking Justice Department documents on past U.S. approvals of airline mergers as the carriers fight the government’s effort to block their proposed tie-up.
The Justice Department, which sued the airlines in August, has refused to turn over records about its approval of previous airline deals such as the 2010 United Airlines-Continental Airlines merger, the companies said in a court filing Friday in federal court in Washington.
The Justice Department claims the proposed merger of American parent AMR Corp. and US Airways, which would create the world’s largest airline, would reduce competition and hurt consumers. Fort Worth-based AMR and US Airways, based in Tempe, Ariz., are defending the deal as procompetitive. The case is to begin trial Nov. 25.
The airlines want a court order compelling documents on the 2005 US Airways-America West Airlines merger, the 2008 Delta Air Lines-Northwest Airlines merger, the 2010 United Airlines-Continental Airlines merger, and the 2011 Southwest Airlines-AirTran merger, according to the court filing.
Officials with the airlines said they need the records to defend against the Justice Department’s lawsuit and “will be at a significant disadvantage” if the U.S. doesn’t respond.
Medical devices to have tracking code
WASHINGTON - Federal health regulators will begin tracking millions of medical devices, from pacemakers to hip replacements, using a new electronic system designed to protect patients by catching deficient implants earlier.
The Food and Drug Administration published new rules Friday that require most medical devices sold in the U.S. to carry a unique code, identifying its make, manufacture date and lot number. The codes will be stored in a publicly accessible database to help regulators, doctors and companies monitor safety problems with devices.
The tracking system has been promoted by doctors and public safety advocates for years. Other industries, from food processors to automakers, have used unique identification codes to track their products through the supply chain for decades.
Josh Rising, director of Pew Charitable Trusts’ medical device initiative, said doctors, hospitals and insurers will be able to add the codes to patients’ medical records, helping them to quickly identify people who have received deficient implants and devices.
The FDA tracking system follows years of recalls involving defibrillators, artificial hips and drug pumps, which have been plagued by design and manufacturing flaws.
AdvaMed, the device industry’s main industry group, said in a statement that the rule is “a good step” toward improving device tracking and design. But AdvaMed said the system “will be a costly and challenging endeavor, affecting all medical technology manufacturers.”Buffett: Fed history’s biggest hedge fund
NEW YORK - Billionaire investor Warren Buffett compared the Federal Reserve to a hedge fund because of the central bank’s ability to profit from bond purchases while accumulating a balance sheet of more than $3 trillion.
“The Fed is the greatest hedge fund in history,” Buffett told students Thursday at Georgetown University in Washington. It’s generating “$80 billion or $90 billion a year probably” in revenue for the U.S. government, he said. “And that wasn’t the case a few years back.”
The central bank has been buying $85 billion of bonds a month to help the U.S. recover as it emerges from the deepest slump since the Great Depression. Chairman Ben Bernanke and other Fed policymakers unexpectedly opted this week to sustain that pace of asset purchases instead of tapering it, saying they need to see more signs of lasting improvement in the economy.
The Fed remitted $88.4 billion to the Treasury Department last year. The payments have ballooned as the central bank built its balance sheet during the past five years.
- Bloomberg News
Home Depot cuts part-timers’ insurance
ATLANTA - Atlanta-based The Home Depot is eliminating the limited medical insurance is has offered to its many part-time employees.
The change means those workers will either seek coverage from new public insurance marketplaces that open Oct. 1 or face a penalty, The Atlanta Journal-Constitution reported.
The retailer said its decision is in response to the new law on health-care coverage, the Patient Protection and Affordable Care Act.
Home Depot joins a growing list of corporations that have cut back on or shifted their employee health insurance offerings. Some have cited potential savings, and others are pointing to better employee benefits as reasons for their decision.
The change affects about 20,000 part-time Home Depot workers nationwide who take the insurance coverage.
The company would not disclose how much it will save by dropping the insurance.
Home Depot will continue to offer other benefits to its part-time workers, including dental and vision coverage, the company said.
- The Associated Press
Smithfield investor backs Chinese bid
Smithfield Foods Inc.’s largest shareholder said Friday that it will vote in favor of a proposed takeover by a Chinese meat producer after failing to find an alternative bidder.
Starboard Value LP had said earlier this month that that it would vote against Shuanghui International Holdings Ltd.’s $34-per-share offer because it wanted more time to seek alternatives that would provide better shareholder value.
The New York investment firm said it believes that another bidder could have offered shareholders a better deal, but it could not secure an offer under existing time and financial constraints. Unless another proposal emerges, Starboard plans on voting in favor of Shuanghui’s $4.7 billion offer. The vote has been set for Tuesday.
Starboard owns about 5.7 percent of Smithfield’s common stock.
The investment firm had argued that while the deal with Shuanghui does offer some value, shareholders would be better served if the company focused on selling its various divisions, which include fresh pork and hog production businesses, as well as its international divisions.
The deal, which is expected to close by the end of the year, would be the largest takeover of a U.S. company by a Chinese firm, valued at about $7.1 billion including debt.
Smithfield shares fell 21 cents to close at $33.96.
- The Associated Press
Business, Pages 32 on 09/21/2013