Merrill CEO will move to Bank of America Bank of America Corp. said Thursday that Merrill Lynch & Co. Chief Executive John Thain will take a new position at Bank of America once the bank completes its acquisition of Merrill. The new division that Thain, 53, will oversee includes many of the operations that will be merged from Merrill, including the brokerage and mutual fund operations as well as Bank of America's investment banking and management operations already in place. He'll serve as president of global banking, securities and wealth management for Bank of America.
Burger King is eliminating trans fat Burger King Corp. said Thursday it is now cooking with trans-fat-free cooking oils at all of its restaurants nationwide. The No. 2 hamburger chain also said all of its menu ingredients, including its baked goods, will contain zero grams of trans fat by Nov. 1. Trans fats are partially hydrogenated vegetable oil. They can raise bad cholesterol and lower healthy cholesterol, raising the risk of heart disease, according to doctors. Trans fats are used to increase shelf life and preserve flavor.
Marriott sees profit fall, offers grim outlook Hotel company Marriott International Inc. said Thursday that its third-quarter profit dropped 28 percent from a year earlier and it warned investors about deteriorating conditions for 2009. In a conference call with investors, Chief Financial Officer Arne Sorenson argued that Congress should pass a financial rescue package: "There are thousands, maybe tens of thousands of jobs at stake in our company alone, and we are typical," he said. And it is crucial "that the plan be big and enacted very, very soon." Marriott's fourth-quarter earnings projections came in well below analysts' expectations at 44 cents to 50 cents per share. Analysts polled by Thomson First Call forecast profit of 63 cents.
30-year mortgage rates hit another high Rates on 30-year mortgages have risen for a second straight week, climbing to the highest level in a month. Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 6.10 percent this week, up slightly from 6.09 percent last week. It was the highest level since 30-year mortgages averaged 6.35 percent for the week ending Sept. 4. Other rates were mixed. Rates on 15-year fixed-rate mortgages edged up to 5.78 percent, compared to 5.77 percent last week. Rates on five-year adjustable-rate mortgages dipped slightly to 6 percent from 6.02 percent last week. Rates on one-year adjustable-rate mortgages were unchanged at 5.16 percent.
European bank holds interest rate steady The European Central Bank left its key interest rate unchanged at 4.25 percent Thursday amid concerns over inflation but explored the option of lowering the rate as the financial crisis increasingly affects the continent. ECB President Jean-Claude Trichet said the bank's governing council decided unanimously to leave its refinancing rate as is -- but first weighed their choices. "Our unanimous conclusion is that we were right in maintaining interest rates as they are," he said.
E.U. will discuss response to U.S. crisis France on Thursday formally called a weekend summit to hash out a common European Union response to the spreading U.S. financial crisis, amid divisions among European officials about how closely to coordinate their action. France's President Nicholas Sarkozy denied that the leaders would consider a costly Europewide bank protection fund.
