Lloyds to pay $380 million for rate-rigging
The Lloyds Banking Group agreed to pay more than $380 million to British and United States authorities to resolve investigations into the manipulation of rates, including one used to determine fees paid by Lloyds for taxpayer-backed funding during the financial crisis. The British lender is the latest big bank to admit criminal wrongdoing by its employees in trying to manipulate the London interbank offered rate, or LIBOR, and other global benchmark interest rates. Lloyds, partly owned by the British government as a result of a bailout during the financial crisis, will also pay an additional 7.76 million British pounds, or about $13.2 million, to compensate the Bank of England for the manipulation of another benchmark rate, which was used to determine fees paid under an emergency funding program for financial institutions.
Profitable Virgin America files for IPO
Virgin America, the sleek low-cost American airline partly owned by Richard Branson, filed for an initial public offering after posting its first annual profit. The airline gave a placeholder fundraising target of $115 million, a figure used only to determine filing fees. Virgin America, known for its stylishly upholstered aircraft, has tried to be the latest disruptive airline to take flight in the United States. But it was only last year that the company reported its first yearly profit in its decade of existence, earning $10.1 million on $1.4 billion in operating revenue. Though sharing its name with Branson's Virgin empire, Virgin America counts the British billionaire as only a minority shareholder.
Darden CEO to depart as Red Lobster is sold
Darden Restaurants CEO and Chairman Clarence Otis is stepping down as the company fights to fix its flagship Olive Garden chain following its contested sale of Red Lobster. The company, based in Orlando, Fla., also said that it's changing its corporate policies to split the chairman and CEO roles. Otis joined Darden in 1995 and ascended to the CEO spot in late 2004. The chairman position was added a year later. The departure of Otis isn't entirely a surprise, given Darden's troubles. The company has been pressured for years to turn around declining sales at Olive Garden and Red Lobster.
Ford charging more for aluminum F-150
Ford Motor Co. is raising the price of its new aluminum-sided pickup truck but still trying to stay competitive with rivals. Ford released pricing on the truck Monday. It goes on sale later this year. The new truck comes in five variants, down from 10 on the current truck. The base XL will start at $26,615, including destination fees. That's slightly higher than the Ram pickup but lower than the Chevrolet Silverado. The most-expensive Platinum version will start at $55,235. All have aluminum sides, which is more expensive than steel but weighs less and saves fuel. The base XL and XLT models — which make up 70 percent of sales — will cost $395 more than outgoing models. A fancier King Ranch costs $3,615 more.
Tyson to sell poultry units in Mexico, Brazil
Tyson Foods Inc. plans to sell its poultry businesses in Mexico and Brazil for $575 million in cash to help pay debt from its recently announced acquisition of Hillshire Brands. The Springdale, Ark., meat processor said it still plans to expand its international operations, especially in Asia, but the businesses it will sell didn't have the scale to gain leading positions in their markets. Tyson made the announcement the same day it reported quarterly earnings that climbed more than 4 percent. Tyson said it expects the sale of its Mexico and Brazil operations to JBS SA, parent of Pilgrim's Pride, will be completed by the end of the year.
U.S. pending homes sales slipped in June
Fewer Americans signed contracts to buy homes in June, as the real estate market appears to have cooled off this summer. The National Association of Realtors said its seasonally adjusted pending home sales index slipped 1.1 percent to 102.7 last month. The index remains 7.3 percent below its level a year ago. Sales have been slowed by a mix of meager wage growth, rising home prices, and mortgage rates that rose steadily through the end of last year. Pending sales are a barometer of future purchases. A one- to two-month lag usually exists between a contract and a completed sale.
EBay to experiment with mechanic services
EBay Inc. plans to experiment with selling auto mechanics' services alongside car parts, said Devin Wenig, president of the marketplaces business, in an expansion of the e-commerce company's offerings. The plans indicate that eBay is seeking to capitalize on the boom in online services and sharing applications. Companies such as Uber Technologies Inc. and Airbnb Inc. have created online marketplaces for car rides and room rentals and shown that Web companies can sell services as well as hard goods.
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