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First Banks’ plan to sell its Texas banking operation fell through on Monday.

The Clayton-based bank and Sterling Bancshares announced that the deal was off. "This was a mutual decision by the parties after it was determined that the transaction could not be completed by Dec. 31," the banks said in a news release.

Troubled by large losses, largely in California development loans, First Banks has been trying to sell off assets in order to shore up its capital. First Banks, the holding company for First Bank, is based in Clayton.

The Texas deal involved 19 Texas branches, including $500 million in deposits and $230 million in loans. The sale represented 5.8 percent of the First Bank’s deposits and 2.8 percent of its loans. First Bank has also signed deals to sell its 24 Chicago bank branches and a St. Louis insurance operation.

Sterling Bancshares of Houston last month announced a $24 million loss for the third quarter as it sold off $51 million in troubled loans to investor groups.

First Banks lost $91 million in the third quarter, and $274 million through the first nine months of the year.

Sterling and First Banks said the sale of Texas branches "could still be beneficial." But they noted that the "current environment" makes regulatory approval a "longer than anticipated process."

No further details were disclosed.

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Taiwan’s central bank kept its benchmark interest rate at a record low and pledged to monitor property-price inflation, reinforcing forecasts for an increase in borrowing costs next year.

Governor Perng Fai-nan and his board left the discount rate on 10-day loans to banks at 1.25 percent yesterday, as forecast by all 11 economists surveyed by Bloomberg News.

Taiwan, emulating Asian counterparts such as South Korea, is putting off rate increases to encourage investment and private consumption and pull the economy out of a yearlong slump. The central bank said in a statement yesterday that it saw no inflation pressure and Perng told reporters that policy makers will closely monitor property prices.

“The central bank is keeping rates steady to help strengthen the economic recovery,” said Serena Tseng, an economist at Jih Sun Securities Co. in Taipei. “Low consumer prices provide scope for the central bank to focus on reviving the economy.”

Kevin Hsiao, director of wealth management research at UBS AG in Taipei, said the central bank may raise rates by 25 basis points in the second quarter of 2010 as an economic recovery strengthens.

Rates Unchanged

Japan’s central bank on Dec. 18 maintained its benchmark overnight lending rate at 0.1 percent, and the Bank of Korea on Dec. 10 kept its rate unchanged for a 10th month at a record-low 2 percent, while signaling it may increase borrowing costs as the economic recovery gathers pace.

Taiwan’s central bank set next year’s target for growth in M2 money supply at between 2.5 percent and 6.5 percent, the same as for this year. It said that liquidity in the financial system in enough to support economic activities.

The island’s gross domestic product shrank 1.29 percent in the three months through September, the least in a year, after a revised 6.85 percent contraction in the second quarter. The economy may expand 4.39 percent next year, the cabinet’s statistics bureau projected last month.

President Ma Ying-jeou’s administration plans NT$858.5 billion ($26.5 billion) of spending over four years, or about 6 percent of GDP, on infrastructure, consumer grants and tax cuts to help revive the economy. Perng lowered borrowing costs by 2.375 percentage points from September 2008 to February.

Falling Unemployment

Signs of a recovery have prompted employers to start hiring, with Taiwan’s unemployment rate falling for a second straight month in November, and companies including Taiwan Semiconductor Manufacturing Corp. forecasting better sales.

The benchmark Taiex stock index has climbed 74 percent this year, set for its best year since 1993, as investors bet the island’s economy is past the worst. The index climbed 21.13, or 0.3 percent to 7,984 easy fast payday loans.67 as of 12:11 p.m., rising for the sixth- consecutive day to its highest since June 19 last year. Taiwan’s dollar rose 0.2 percent to NT$32.247 against its U.S. counterpart at today’s lunch break, according to Taipei Forex Inc.

Low interest rates have boosted consumer spending and business investment. Domestic consumption climbed 2.2 percent in the three months through September, the first increase since the recession began.

Taiwan’s consumer prices will be “subdued” in the next three months, Governor Perng told reporters in a briefing after the rate decisions in Taipei yesterday.

Salary Increase

Taiwan Semiconductor, the island’s biggest company by market capitalization, said this month it will increase employees’ base salary by 15 percent, and capital spending next year will be “much higher” than the $2.7 billion budgeted for this year.

Taiwan’s exports climbed for the first time in 15 months in November, and consumer prices may increase 0.92 percent in 2010 after falling 0.73 percent this year, the statistic bureau said last month. The island’s top economic planner says the economy may grow 4.8 percent next year, the jobless rate fall to 4.9 percent and inflation run at 1 percent.

Economists including Chuang Rehong of SinoPac Securities Corp. in Taipei and Mill Lin of Chinatrust Commercial Bank say the central bank may shift to a tightening rate policy to curb excessive property-market movements after Perng last week repeated a call for lenders to monitor risks of deteriorating mortgage-loan quality.

Asset Bubbles

“The central bank has signaled its concerns on asset bubbles,” said Lin, who forecasts a rate increase in June 2010. “As long as the recovery persists, there is no reason for the central bank not to start raising borrowing costs.”

Taiwan’s central bank today issued a statement denying a newspaper report that said it is placing credit controls on properties in three metropolitan areas on the island. The Taipei-based Commercial Times said today the central bank is imposing credit controls in Taipei, Taichung and Kaohsiung.

Banks on the island of 23 million people have cut mortgage rates to the lowest since records began, helping drive up home prices 14.4 percent in the nine months through September, according to Sinyi Realty Co., Taiwan’s biggest real-estate brokerage.

Taiwan banks increased home loans by 4.3 percent to NT$4.91 trillion at the end of October from a year earlier, according to the central bank.

“I hope foreign inflows are for direct investment, not for purchases of assets,” Perng said.

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The U.S. jobless rate continues to affect Cintas Corp.’s business, and the uniform maker saw drops in profits and revenues during its fiscal second quarter.

Cintas posted second-quarter net income of $57.2 million, or 37 cents per share, compared to $71.8 million or 47 cents per share in the year-ago quarter. Total revenue was $884.5 million versus $985.2 million in second-quarter 2008. Analysts on average had expected revenues of $890 million and earnings per share of 43 cents.

“While job losses have moderated recently, 1.2 million jobs were lost during the last six months and we do not know when positive job growth will return,” said CEO Scott Farmer in a news release.

For the first half of fiscal 2010, Cintas reported net income of $111.2 million, or 72 cents per share, versus $150.5 million, or 98 cents per share in the same 2009 period. Total revenue fell to $1.78 billion from $2 billion.

Cintas (NASDAQ: CTAS) manufactures and supplies corporate identity uniforms and provides ancillary products and services to businesses worldwide.

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Ford Motor Co. CEO Alan Mulally says the automaker plans to speed up debt repayment as its financial condition continues to improve.

Ford has about $27 billion in debt. Mulally says the company repaid $10 billion this year and has sold $1 easy to get unsecured personal loans.6 billion worth of stock.

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Colorado nonprofits expected a tough year in 2009 — and that’s exactly what they got, according to a survey released Wednesday by the Colorado Nonprofit Association and the Community Resource Center.

Of the 450 leaders of Colorado nonprofit organizations surveyed, 48 percent said their organizations expect to fall short of their revenue goals for the year.

Other key survey findings:

• Fifty-six percent of respondents reported an interval over the last 12 months when total expenses exceeded total revenue.

• Sixty-five percent said a major donor reduced or eliminated support due to the economic downturn.

• Sixty-four percent said the economy had a negative impact on obtaining funding from foundations, government agencies and corporations.

The survey — entitled “Weathering the Storm” — is an update of a similar report published earlier this year.

When it became apparent that nonprofits in the state were doing worse than they expected at the beginning of the year, CRC and the Colorado Nonprofit Association invited charities to complete an online questionnaire between Oct. 26 and Nov. 6.

But despite discouraging financial returns, the latest report shows that Colorado nonprofits are taking measures to persevere in during a challenging economic time.

According to the survey, the state’s nonprofits responded to the funding gap by:

• Collaborating with other organizations, with 39 percent sharing expenses and costs payday loan.

• Increasing fundraising activities. Thirty-two percent of nonprofits ramped up face-to-face solicitations, 42 percent requested more foundation grants and 27 percent asked board members to contribute more money.

• Reducing expenses. To respond to the economic downturn, 28 percent of nonprofits surveyed cut back or eliminated programs. Meanwhile, 21 percent cut staff pay or hours and nearly 16 percent laid off staff.

• Using more unpaid volunteers. The survey said 43 percent of nonprofits are already using more volunteers and nearly 40 percent are considering such action.

Looking ahead over the next three years, many Colorado nonprofit leaders say they are re-examining their services and existing programs.

Roughly one-third are re-evaluating their assumptions with the possibility of fundamental restructuring. Another 35 percent expect to expand services in key areas (an increase from 26 percent in the first version of the report).

However, most respondents said they expected their nonprofit will “stay in business.” Fewer than 1 percent of respondents anticipated the need to close.

Click here to download the report in PDF format.

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Bennett Goldworth thought he was set for life when he retired three years ago at age 50. He bought a waterfront apartment at the high-end Four Seasons Condominium in Fort Lauderdale, and said goodbye to New York and his job selling real estate.

"I felt I had everything I wanted in life, which was great," said Goldworth.

A decade of investing with Bernard Madoff had given Goldworth the financial security to enjoy the "good life" in Florida, until Madoff’s arrest last Dec. 11. "I didn’t just have money stolen, I had my whole life stolen," he said.

Today the condominium is in contract to be sold. Goldworth is living with his father in Manhattan and grateful to be back at the Corcoran Group selling homes again.

He’s also among the first to receive a full half-million dollar insurance settlement from the Securities Investor Protection Corporation (SIPC), which insured direct accounts of Bernard L. Madoff Investment Securities. "I’m one of the fortunate ones," said Goldworth at his office where fellow realtors all were trying to sell million-dollar apartments. "I was very happy, very pleased."

But, other Madoff victims — like Judy and Don Rafferty, senior citizens who’ve had to come out of retirement — have gotten nothing.

"I felt as though we were cheated. I felt violated," said 67-year old Judy who now works as a legal assistant.

The Raffertys for years had withdrawn what they believed were earnings from their Madoff account. The trustee overseeing restitution, Irving Picard, says the Raffertys withdrew more than they invested and are therefore entitled to nothing, even though their account also was insured by SIPC for up to $500,000 payday loans.

"They changed the rules in the middle of the game which I don’t think is fair at all," complained Rafferty.

It is fair, argues Goldworth who maintains, "The net winners should be in the back of the line. First thing that should be addressed is that everyone get back everything they invested."

Rafferty counters, "He got his money back, why wouldn’t he feel comfortable? It’s the people who haven’t gotten their money back that are not happy."

The majority of Madoff investors are not happy. More than 16,000 investor claims have been filed, SIPC President Stephen Harbeck said Thursday. So far, Picard and his staff have reviewed 11,563 of them and approved only 1,647 — just 14%.

Even for those victims whose requests have received an ‘OK’, the bulk of the funds are not guaranteed: only $561 million — 12% of the allowed claims — is being funded by SIPC.

Some Madoff investors are suing Picard, charging him with breach of fiduciary trust for denying them a SIPC insurance payment.

Those lawsuits are especially troubling to Goldworth who believes legal battles will further delay the Trustee paying out claims. "It’s very counterproductive," he said. 

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The National Hockey League said Friday night it has signed a letter of intent to sell the financially struggling Phoenix Coyotes to a new ownership group from Toronto.

"The NHL and Ice Edge Holdings announced today that they have entered into a letter of intent to proceed in attempting to document and close a proposed transaction pursuant to which Ice Edge would purchase the Phoenix Coyotes’ franchise. While much remains to be done, the NHL looks forward to working closely with Ice Edge to bring the sale to conclusion as expeditiously as possible. Ice Edge has committed to keep the Coyotes in Glendale, Arizona," NHL Commssioner Bill Daly said in a statement.

The Coyotes are in Chapter 11 bankruptcy and were bought by the NHL in October for $140 million.

Ice Edge investors include Canadians and Americans. The group wants to keep the team in Arizona but previously had talked about playing some home games in Canadian cities without NHL teams.

Ice Edge needs to finalize the purchase of the Coyotes from the NHL and then will work on an arena lease deal with the city of Glendale. The Phoenix suburb owns Jobing.com Arena where the Coyotes play.

"The city of Glendale is pleased that the National Hockey League has concluded the initial negotiations for the sale of the Coyotes and is entering into a letter of intent with Ice Edge Holdings to immediately assume operations of the team Faxless payday loans. The transfer of ownership and possession to Ice Edge Holdings is a major and final step in establishing the long-term presence of hockey in Glendale, Arizona," Glendale said in a statement.

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The Toronto stock market closed lower, led by losses in the telecom sector as a new company joins the wireless wars.

The S&P/TSX composite index fell 40.64 points to 11,423.93.

Industry Minister Tony Clement overruled an earlier decision by the Canadian Radio-television and Telecommunications Commission and gave the green light to Globalive Wireless Management Corp. The company will join BCE Inc. (TSX: BCE), Rogers Communications (TSX: RCI.B) and Telus Corp. (TSX: T) in providing cellphone service no fax payday loans.

The Canadian dollar was down 0.85 of a cent to 94.35 cents US. Crude closed 67 cents lower at US$69.87 a barrel.

Solid retail data sent the Dow Jones industrial average up 65.67 points to 10,471.5.

The Nasdaq composite index dipped 0.55 of a point to 2,190.31 while the S&P 500 index climbed 4.07 points to 1,106.42.

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Hiring by U.S. discount, grocery, restaurant and specialty chains in November rose to the highest level in 2009, signaling that retailers may be anticipating a gradual recovery in consumer spending, a monthly survey found.

In November, 3.87 percent of applications resulted in hires, the most this year according to seasonally adjusted figures compiled by software maker Kronos Inc. Job applications last month fell to 1.27 million, the lowest since March, after 10 straight months of increases, the closely held Chelmsford, Massachusetts-based company said today in a statement.

While these are classic signs of a gradual, post-recession recovery, last month’s hiring increase might be a “spill over” from October, as retailers delayed the peak season for taking on employees, Robert Yerex, Kronos’s chief economist, said by telephone Dec. 4 from Beaverton, Oregon.

The U.S. jobless rate decreased to 10 percent in November after reaching a 26-year high of 10.2 percent in October, according to a Dec. 4 report from the Bureau of Labor Statistics.

Retailers “weren’t sure how good or bad this year would be,” Yerex said. “There’s still a little bit of shell shock from 2007 and 2008, when retailers were caught with a lot of people on staff, a lot of product inventory, but a difficult time selling it.”

Kronos’s analysis covers 68 companies with 27,034 U.S. stores. The company makes software that businesses use to process hiring, payroll and scheduling, and manage employees. Chains that use Kronos products account for about 15 percent of U.S. retail jobs, according to the company.

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Controversy has accompanied Verizon Wireless' latest Droid phone ad that mocks Apple Inc.'s iPhone, but never actually mentions its rival.

The ad starts with a group of mesmerized people looking at a phone that is behind a glass case and asks, "Should a phone be pretty? Should it be a tiara-wearing, digitally clueless beauty pageant queen?”

Then it says the Motorola Droid, which uses Google Inc.'s (NASDAQ:GOOG) Android operating system, is "racehorse-duct-taped-to-a-Scud-missile fast."

It also shows what some critics are portraying as an anti-gay image of a group of fashionably dressed (and partially undressed) male statues getting hit with tomatoes.

The ad can be viewed on YouTube by clicking here.

A post by Kara Swisher on the Wall Street Journal's All Things Digital blog slams the ad and is headlined, "Is the new droid ad anti-women and anti-gay or just plain idiotic? Actually all three!

VentureBeat rated the ad "just plain clueless," especially for "likening the Droid phone’s speed to that of the Scud missile, a not-very-fast Russian rocket used by Saddam Hussein’s regime no faxing 1 hour payday loans. A Scud killed 28 Americans at an airbase in Saudi Arabia in 1991. Other Scuds have killed lots more civilians in the Middle East."

Not all of the reviews have been negative, with many focusing on the cool look and humor of the spot.

But while saying he liked the ad, Stuart Turton of PC Pro wrote, that "when stripped to its barebones (the ad) actually says that the Droid is uglier than an iPhone, and… erm… well, that’s it. Funnily enough, it appears that by criticising the iPhone for placing style before substance, Verizon’s done exactly that."

Verizon's other Droid ads resulted in legal challenges by the iPhone's exclusive U.S. service provider, AT&T Inc., which were recently dropped. In those, Verizon took aim at AT&T's service and likened the iPhone to a misfit toy in a holiday-themed video.

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