JPMorgan paying $5.1B in Fannie, Freddie deal
WASHINGTON — JPMorgan has agreed to pay $5.1 billion to resolve claims that it misled Fannie Mae and Freddie Mac about risky mortgage securities it sold them before the housing market collapsed.
The Federal Housing Finance Agency, which oversees Fannie and Freddie, announced the settlement Friday. A broader deal with the Justice Department is being negotiated.
JPMorgan sold tens of billions in mortgage securities to Fannie and Freddie, according to the agency. They soured after the housing bubble burst in 2007, losing billions in value.
The government rescued Fannie and Freddie during the financial crisis when both were on the verge of collapse. The companies received taxpayer aid totaling $187 billion. They have since become profitable and repaid $146 billion.
Gov’t shutdown hits US consumer confidence
WASHINGTON — U.S. consumer confidence fell in October as concern grew that the partial government shutdown and political fight over the nation’s borrowing limit would slow growth.
The University of Michigan said Friday that its index of consumer sentiment fell to 73.2 from 77.5 in September. The index has fallen for three straight months.
Falling confidence can cause Americans to spend less, which could slow the economy. Lower confidence “going into the holiday season could somewhat limit consumers’ plans to splurge,” said Yelena Shulyatyeva of BNP Paribas.
UPS more than doubles its profit in 3rd quarter
ATLANTA — A pickup in deliveries is helping UPS more than double its profit from a year ago, when Big Brown took a hit from pension-restructuring costs.
United Parcel Service said Friday that net income in the third quarter soared to $1.10 billion, or $1.16 per share. That’s a penny better than analysts expected and up from $469 million, or 48 cents a share, a year ago. Revenue rose up 3.4 percent.
The company says it’s standing by its forecast of full-year earnings between $4.65 and $4.85 per share. Analysts expect $4.74 per share.
Biden puts postponed canal tour on calendar
WASHINGTON — Vice President Joe Biden has rescheduled a visit to Panama that was put on hold last month amid threats of a U.S. military strike on Syria.
His office says Biden now plans to travel to Panama the third week of November. He’ll meet with Panama President Ricardo Martinelli and tour the Panama Canal expansion project. In September Biden toured the Port of Charleston and others to highlight improvements designed to accommodate bigger ships that will be able to pass through the canal starting in 2015. The Obama administration sees such projects as key to job creation.
P&G’s fiscal 1st quarter net income rises by 8%
CINCINNATI — Procter & Gamble’s its first-quarter net income rose 8 percent to $3.03 billion as world’s largest consumer sold more of its detergent and diapers and cut costs. The maker of Tide and Gillette razors says Friday that revenue rose 2 percent to $21.2 billion.
McDonald’s is ending relationship with Heinz
McDonald’s has lost its taste for Heinz ketchup. The fast-food giant said Friday that it is cutting ties with the condiment company after management changes there. A former Burger King CEO became head of Heinz in June.
The impact may be tasted more overseas. In the U.S., McDonald’s uses Heinz only in Pittsburgh and Minneapolis.