Blankfein to testify before Congress next week Goldman Sachs CEO Lloyd Blankfein will testify before a Senate panel Tuesday in what are expected to be his first public comments on the Securities and Exchange Commission's lawsuit charging that the bank defrauded two investors, the Associated Press reported, citing a person familiar with the plans. A 31-year-old Goldman employee at the center of the lawsuit, Fabrice Tourre, is also expected to be questioned at the hearing, according to media reports.
IMF raises forecast for world economic growth The International Monetary Fund said the global economy, after enduring a crippling recession, should see better-than-expected growth this year, led by strength in China and other developing nations. In an updated economic outlook, the IMF forecast that the world economy would expand 4.2 percent this year, faster than its previous projection and a sharp improvement from 2009, when global output fell 0.6 percent, the worst performance since World War II.
Amid merger talk, AirTran eyes Eastern slots AirTran Holdings Inc., the low-fare carrier that flies mostly in the Eastern U.S., is interested in Washington and New York-area flight slots that may become available should United Airlines find a merger partner. "If there are carve-outs, perhaps we could play a role as a facilitator, bringing more competition to perhaps help someone clear regulatory hurdles," AirTran Chief Executive Bob Fornaro said. "To the degree there's a little less capacity east of the Mississippi River, we would benefit."
Corporate customers caught in McAfee glitch Computers in companies, hospitals and schools around the world got stuck repeatedly rebooting themselves after an antivirus program identified a normal Windows file as a virus. McAfee Inc. confirmed that a software update it posted Wednesday morning caused its antivirus program for corporate customers to misidentify a harmless file. It has posted a replacement update for download. McAfee could not say how many computers were affected.
Tuna producer Bumble Bee cuts back on salt Bumble Bee Foods Inc. is the latest foodmaker to cut salt in its products as pressure builds from public health groups and federal regulators. The tuna company, based in San Diego, said it has completed a multiyear reduction of salt in some of its key products: cutting sodium by 44 percent in its albacore products and 22 percent in its light meat products. The lower-salt products will hit shelves next month.
Former KB Home CEO found guilty of fraud The former head of construction giant KB Home was convicted of four felony counts in a stock-option backdating scam. A federal jury in Los Angeles found Bruce Karatz guilty of two counts of mail fraud, one count of lying to company accountants and one count of making false statements in reports to the Securities and Exchange Commission. Karatz was acquitted on 16 other counts, including three counts of securities fraud, the most serious charges against him.
Visa to buy CyberSource for $2 billion Visa Inc. will pay $2 billion in cash to buy e-commerce payment processor CyberSource Corp., the companies said. CyberSource's fraud prevention technology is expected to help Visa to increase online use of the credit, debit and prepaid cards that bear its name. The purchase price of $26 per share represents a 34 percent premium over Mountain View, Calif.-based CyberSource's closing price Tuesday.
Owner of Fuddruckers files for Chapter 11 Magic Brands, the owner of Fuddruckers and Koo Koo Roo restaurants, filed for Chapter 11 bankruptcy protection with an agreement to sell most of its assets for $40 million to Tavistock Group. Magic Brands, based in Austin, Texas, said it plans to close 24 corporate-owned Fuddruckers locations by April 30. Operations will continue normally at more than 200 other corporate-owned and franchised restaurants.
FROM NEWS SERVICES