FDIC offers new fee system Federal bank regulators on Tuesday proposed a new system of fees paid by U.S. banks that would shift more of the burden to bigger institutions to support the deposit insurance fund. The board of the Federal Deposit Insurance Corp. voted to propose rules to change the basis for assessing a bank's insurance fees from the amount of its deposits to its assets. The change is required by the financial overhaul law enacted in July. Officials said it would more clearly reflect the risks to the insurance fund. It would be the first time since 1935, during the Great Depression, that insurance premiums wouldn't be based on deposits.
Airlines fined for price-fixing on cargo The European Union fined 11 airlines a total 799.4 million euros ($1.1 billion) for fixing prices on international cargo shipments. The European Commission, the EU's competition watchdog, said "the carriers coordinated their action on surcharges for fuel and security without discounts" between December 1999 and February 2006, when the EU's investigation stopped the cartel. The biggest fines went to Air France-KLM (310.1 million euros) and British Airways PLC (182.9 million euros); others fined were Air Canada, Cathay Pacific, Cargolux, Japan Airlines, LAN Chile, Martinair, SAS, Singapore Airlines and Qantas. Lufthansa escaped a fine because it blew the whistle on the cartel.
GM to lay off Mr. Goodwrench General Motors is asking Mr. Goodwrench to pack up his toolbox. The mechanic who served as the symbol of GM's dealer service brand for 37 years will be scrapped Feb. 1 in favor of "certified service" brands for each of GM's remaining four remaining nameplates -- Chevrolet, Buick, GMC and Cadillac -- the company said Tuesday. The Detroit automaker has been focusing its marketing efforts for the past year or so on brands rather than the corporate name because customers know the brands better than they know General Motors.
Sara Lee sells bread unit to Grupo Bimbo Sara Lee Corp. is cutting the apron strings on its struggling North American bread-making business, selling it to Mexican baking giant Grupo Bimbo for $959 million. The deal makes Grupo Bimbo the largest baker in the U.S. It also marks Sara Lee's last major planned sale of a business line and completes a series of moves to focus on its more-profitable businesses such Hillshire Farms meat and Senseo coffee. Sara Lee, based in Downers Grove, Ill., will still sell its signature frozen cheesecake and deli meats.
McChrystal lands a JetBlue board job Retired Gen. Stanley McChrystal, fired by President Obama after making insulting comments about top administration officials, was named Tuesday to the JetBlue Airways Corp. board of directors. JetBlue CEO Dave Barger said McChrystal, 56, would offer "fresh perspectives" at the New York-based airline. Obama fired McChrystal in July after comments that the general and his aides made about civilian leaders in a profile in Rolling Stone.
Goldman Sachs fined $650,000 Industry regulators have fined Goldman Sachs $650,000 for failing to disclose that two of its brokers, including the executive accused of leading the mortgage securities deal that brought civil fraud charges against the firm, were under investigation by the government. The Financial Industry Regulatory Authority announced the fine Tuesday, saying Goldman lacked adequate procedures to ensure that the required disclosure was made for Fabrice Tourre, a Goldman vice president.
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