Struggling Gap fires design chief RobinsonClothing retailer Gap Inc. dismissed its star designer, Patrick Robinson, in an acknowledgement that its problems run deeper than the company had previously indicated. No successor was named. Three months ago, when Gap fired the top business-side executive overseeing its flagship Gap division, it blamed merchandising, how items are presented in stores, for the brand's faltering sales, not design. Gap has drawn criticism for focusing on international growth and its newer Piperlime and Athleta stores, rather than on problems at its namesake brand.
Beware 'burdensome rules,' Bernanke saysFederal Reserve Board Chairman Ben Bernanke said that regulators need to avoid "ineffective or burdensome rules" as they implement the sweeping financial reform law passed last year. In a speech at a Fed conference in Chicago, Bernanke said broad new oversight of the financial system required under the law is already underway. But he warned against regulators going overboard in reaction to the severe financial crisis that struck in 2008 and "stifling reasonable risk-taking and innovation in financial markets."
CEO resigns abruptly at MTV NetworksMTV Networks, the powerhouse cable television operation behind hits like "Jersey Shore," "SpongeBob SquarePants" and "The Daily Show With Jon Stewart," announced that Judy McGrath, its chairwoman and chief executive, was resigning effective immediately. The sudden change ended the tenure of one of the most powerful women in television and stunned many of the company's employees at a time when MTV Networks, which includes channels like MTV, Comedy Central, Nickelodeon and VH1, is riding a surge in both ratings for its programs and profits for its parent company, Viacom.
Judge won't dismiss suit against Wells FargoA lawsuit accusing Wells Fargo of discriminatory lending practices has been allowed to move forward, a victory for plaintiffs that have accused the bank of steering African-Americans toward predatory loans. In the lawsuit, brought by the city of Memphis and Shelby County, Tenn., U.S. District Judge S. Thomas Anderson in Memphis denied a motion from Wells Fargo to dismiss, partly on the grounds that the suit was too broadly drawn. Both jurisdictions accused the lender of improperly steering African-Americans toward loan products that ultimately led to foreclosures, vacancies and increased government costs.
Europeans leave key interest rate steadyThe European Central Bank left its benchmark interest rate unchanged and signaled that it would probably wait until July before it made another move. The Bank of England also kept its main interest rate and bond purchasing program unchanged despite even worse inflation, amid signs that the British economy was still too weak to cope with higher borrowing costs. A month after delivering its first rate increase in almost three years, the governing board of the European Central Bank, meeting in Helsinki, left its main policy rate at 1.25 percent.
