Fed governor Warsh to step down next monthFederal Reserve Governor Kevin Warsh, who was one of Chairman Ben Bernanke's closest financial-crisis advisers before becoming the only governor to question the expansion of record monetary stimulus in November, resigned after five years at the central bank. Warsh, 40, a former investment banker who was the youngest-ever Fed governor when President George W. Bush appointed him in 2006, will leave "on or around March 31," he said in a letter to President Obama that was released by the Fed in Washington. His departure may give Bernanke a stronger hand to complete or potentially expand $600 billion in Treasury purchases through June.
30-year mortgage rates push above 5 percentThe average rate on the 30-year mortgage topped 5 percent this week for the first time since April. Higher rates could further hamper the struggling housing market ahead of the spring's prime home-buying season Freddie Mac said the average rate rose to 5.05 percent from 4.81 percent last week. It hit a 40-year low of 4.17 percent in November. The average rate on the 15-year home loan, a popular refinance option, increased to 4.29 percent from 4.08 percent. It reached 3.57 percent in November, the lowest level on records starting in 1991.
Commodity costs lead Kraft to cut forecastKraft Foods Inc., the world's second-largest food company, lowered its full-year earnings forecast because of rising commodity costs. Profit excluding costs related to the integration of its Cadbury acquisition will rise 11 to 13 percent, the Northfield, Ill.-based company said. That's down from an earlier projection of a rise in the "mid-teens." Kraft Chief Executive Irene Rosenfeld cited surging commodity costs and "persistent consumer weakness in many markets." Kraft fell as much as 71 cents, or 2.3 percent, to $30.40 in after-hours trading after closing at $31.11 in regular trading.
Tyson will pay $5.2 million to settle bribe caseTyson Foods Inc. agreed to pay $5.2 million to settle U.S. allegations that a unit of the nation's largest meat processor bribed officials in Mexico to certify chicken products for export. The settlement, announced by the U.S. Justice Department and the U.S. Securities and Exchange Commission, will resolve criminal charges as well as civil claims filed against Tyson for violating the Foreign Corrupt Practices Act. The settlement must be approved by a federal court in Washington. Tyson said it voluntarily reported the payments to U.S. officials in 2007.
Starbucks' Schultz named to Groupon boardOnline coupon company Groupon said it elected Howard Schultz, the CEO of Starbucks Coffee Co., to its board amid media reports that it is preparing for an initial public offering in the spring. The Chicago company also said Maveron, a Seattle-based venture capital firm co-founded by Schultz, had invested an undisclosed amount in Groupon alongside the appointment. Private companies typically add outsiders to their boards before going public. Schultz has also served on the boards of online auction site eBay Inc. and Drugstore.com, according to Maveron's website.
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