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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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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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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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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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The Obama administration says its stimulus program has created or preserved 12,228 jobs in Arizona this year.

But one leading Arizona economist says that number is not worth the program’s price tag.

Arizona has been allocated $2.8 billion under the American Recovery & Reinvestment Act, according to the administration. The money covers transportation and water infrastructure contracts, weatherization of low income homes, Medicaid, public school funding and university biomedical research among other projects.

Economist Elliott Pollack said Wednesday dividing the federal allocation and the number of jobs equals about $230,000 per job in Arizona.

“They might as well give people the money,” Pollack said Wednesday at an economic forecast sponsored by Arizona State University and JPMorgan Chase & Co.

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Ailing telecom equipment maker Nokia Siemens Networks NSN.UL has changed its business focus to increasing its market share, the new chief executive of the venture was quoted as saying on Sunday.

“In early 2008 we made a strategic decision to focus more on cash flow and profitability than on the market share. Now it’s to give it up and to focus solely on the market share,” Rajeev Suri told Finnish daily Helsingin Sanomat.

Nokia Siemens Networks NSN.UL, a 50-50 venture of Nokia and Siemens, has struggled to make a profit since its start in 2007 as it has faced fierce competition from rivals Ericsson and Huawei HWT.UL.

As Nokia Siemens has focused on profits and avoided the deals most heavily competed for, its market share has dropped since last year, and in the last quarter it lost its second spot in the wireless equipment market to Huawei, according to research firm Dell’Oro.

(Reporting by Tarmo Virki; Editing by Clarence Fernandez)

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The Toronto stock market closed slightly lower Friday, pressured by falling energy stocks as demand concerns and a rising U.S. dollar pushed crude prices down.

The S&P/TSX composite index shed 20.97 points to 11,579.33, down for a second day on another rising tide of concern about whether the market has advanced too quickly relative to the strength of the economic rebound.

"Investors seem to need a constant reassurance with where we are in the economic recovery," said Brett D'Arcy, chief investment officer at CBIZ Wealth Management Group in San Diego.

"We just haven't gotten it in the past few days."

But the market advanced 171.65 points or 1.5 per cent this week on the way to a solid gain for November after a short-lived spell of pessimism sent the TSX down about four per cent for October.

"We're going to get periods of consolidation and the markets aren't going to go straight up," said Colin Cieszynski, market analyst at CMC Markets Canada.

"To have consolidations from time to time are not unheard of and, to be honest, they're healthy for the markets. You don't want to see the markets going straight up all the time."

The Canadian dollar was down 0.56 of a cent to 93.47 cents US as Federal Finance Minister Jim Flaherty said the Conservative government doesn't plan to undertake major new spending initiatives in next year's budget. Rather, it will continue with the $61 billion in stimulus spending announced in January.

There was also disappointment surrounding the latest earnings report from computer maker Dell Inc. The company said Thursday that its net income dropped 54 per cent to US$337 million in the latest quarter amid signs the company isn't fully benefiting from the computer industry's fledgling recovery.

Dell's numbers missed Wall Street's forecasts. However, it said it is seeing improvement in some areas even as it repeated an earlier prediction that a meaningful rebound in technology spending by businesses won't come until next year. Its stock was down $1.58 or 9.96 per cent to US$14.29.

The Toronto energy sector was down 0.67 per cent as oil moved lower for a second day. The December crude contract on the New York Mercantile Exchange dropped 74 cents to US$76.72 a barrel. Canadian Oil Sands Trust (TSX: COS.UN) declined 64 cents to $29.55.

The gold sector was off 0.54 per cent even as the December contract on the Nymex closed up $4.90 to a record US$1,146.80 an ounce. Kinross Gold (TSX: K) faded 32 cents to $20.39.

The base metals sector was down 0.37 per cent as the December copper contract rose 2.7 cents to US$3.108 a pound. HudBay Minerals (TSX: HBM) lost 46 cents to C$15.23.

The TSX tech sector was the biggest gainer, up 0.72 per cent with Research In Motion Ltd. (TSX: RIM) advancing 95 cents to $63.66.

The TSX Venture Exchange added 7.12 points to 1,408.06.

New York markers were also weak as demand for safe havens rose following Dell's report and as European Central Bank president Jean-Claude Trichet said the ECB plans to start reining in some of its stimulus programs. Hiking borrowing rates could help keep inflation in check but could also slow improvement in the economy.

Investors seeking safety pushed into the U.S. dollar. A strengthening dollar curtails foreign demand for commodities, which are traded in dollars. It also can depress U.S. exports, which become more expensive as the dollar rises.

The Dow Jones industrial average closed down 14.28 points to 10,318.16 but gained a slight 47.69 points for the week.

The Nasdaq composite index lost 10.78 points to 2,146.04 and the S&P 500 was off 3.52 points to 1,091.38.

American homebuilder D.R. Horton Inc. also was a letdown as it reported that its fiscal fourth-quarter loss narrowed as it took smaller writedowns on its inventory. Even as its losses shrank, revenue fell 42 per cent as the housing market remained unsteady and its shares dropped $1.88 or 15.35 per cent to US$10.37.

In other corporate news, Agrium Inc.'s (TSX: AGU) reluctant U.S. takeover target, CF Industries Holdings Inc. (NYSE: CF), made headway in a hostile bid of its own Friday, installing its nominees on the board of Terra Industries Inc. (NYSE: TRA). CF's efforts to buy out its U.S. rival for US$4.1-billion have been met with resistance from Terra's board and management since January.

Agrium, the Calgary-based fertilizer giant, has been doggedly trying to buy CF since February, making its nearly US$5-billion offer conditional on CF dropping its pursuit of Terra. Agrium shares were up 37 cents at $61.13.

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Stocks recovered from early losses Tuesday, closing at 13-month highs for the second day in a row, as strength in commodity-linked shares offset weakness in the retail sector.

The Dow Jones industrial average (INDU) rose about 30 points, or 0.3%, to close at 10,437.42. The S&P 500 (SPX) gained 1 point to close above the key 1,100 level. The Nasdaq composite (COMP) advanced 0.3% to end at 2,203.78.

All three indexes are at their highest levels since October 2008.

Stocks opened lower and struggled for most of the day as the dollar regained ground against rival currencies, reflecting a decreased appetite for risky assets.

The tone improved in the last few hours of trading as oil and gold prices reversed direction. Oil closed above $79 a barrel, while gold edged up to settle at a fresh all-time high.

The rebound in commodity prices boosted shares of energy and materials companies. But gains were limited by weakness in the retail sector after Home Depot and Target offered cautious earnings outlooks.

Tuesday’s economic news was mixed. Government data showed inflation at the wholesale level remains subdued, while industrial production was weaker than expected in October.

Ryan Larson, senior equity trader at Voyager Asset Management, said the stock market continues to look to the dollar for direction.

"The main story has been the dollar trade," he said. "When the dollar is weak, investors take on more risk. If it’s strong, they take the risk off."

The dollar has wallowed near a 15-month low against rival currencies in recent weeks as investors take advantage of U.S. interest rates near zero percent to fund bets in more risky stock and commodities markets.

However, after pushing the major indexes up some 30% from the lows of early March, investors have become wary of placing big bets as the economic outlook remains cloudy.

"The economy is growing, but shows a loss of momentum given the recent round of economic and corporate data," said Nick Kalivas, vice president of financial research at MF Global.

Investors will digest reports on consumer prices and initial construction of new homes Wednesday morning. Later in the week, the government will report on the number of Americans filing first-time claims for unemployment benefits.

Stocks rallied Monday as investors bet on the weak dollar and Federal Reserve Chairman Ben Bernanke said interest rates will remain low amid a slow recovery.

Economy: The government reported that the Producer Price Index, the key measure of inflation for manufacturers, edged up 0 cash till payday.3% in October. Core PPI, which excludes volatile food and energy prices, fell 0.6%.

The PPI was expected to have risen 0.5% for the month, according to a consensus of economist opinion from Briefing.com. The core was expected to have edged up 0.1% in October.

Before the start of market trading, the government also reported that industrial production rose 0.1% last month versus a forecasted 0.4% increase. In September, production rose 0.7%. Capacity utilization rose by 0.2 percentage point to 70.7%, a rate slightly below economists’ expectations for 70.8%.

Companies: Home Depot (HD, Fortune 500) reported a decline in third-quarter earnings to 41 cents per share from 45 cents in the year-ago quarter. While the results were better than 36 cent per share profit that analysts had expected, the company said it expects earnings for the full year to be down 13%.

Discount retailer Target (TGT, Fortune 500) reported an 18% increase in third-quarter profit, helped by gains in the company’s credit card portfolio. But Target, which had suffered declining profits for the last eight quarters, remained cautious about the outlook for holiday spending.

TJX (TJX, Fortune 500), which owns the T.J. Maxx and Marshalls chains, reported a larger-than-expected quarterly profit on increased consumer demand for discount products. The company said it expects profit from continuing operations of 65 cents to 71 cents per share in the fourth quarter. Analysts surveyed by Thomson Reuters are forecasting a profit of 71 cents per share in the fourth-quarter.

On the higher end, Saks (SKS) reported a quarterly profit, surprising analysts who were expecting the company to report a loss. However, the results were driven mostly by cost-cutting, and the company offered a cautious outlook.

International markets: The Nikkei and the Hang Seng each closed lower by a fraction of a percent. European markets ended with losses of less than 1%.

Other markets: Treasury prices rose, with the yield on the 10-year note falling to 3.33%.

The weak dollar recovered a little Tuesday. The dollar index, which measures the U.S. currency against a basket of rivals, was up 0.7% to 75.38 from 74.92.

Oil prices rose 24 cents to settle at $79.14 barrel in New York.

The price of gold closed at an all-time high of $1,139.40 an ounce, up 20 cents from Monday’s record close of $1,139.80. 

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U.S. President Barack Obama said on Sunday the world economy was on a path to recovery but warned that failure to re-balance the global economic system would lead to further crises.

Obama was addressing Asia Pacific leaders in Singapore, where officials removed any reference to market-oriented exchange rates in a communique after disagreement between Washington and Beijing over the most sensitive topic between the two giants.

The statement from the Asia Pacific Economic Cooperation (APEC) forum endorsed stimulus measures to keep the global economy from sliding back into recession and urged a successful conclusion to the Doha Round of trade talks in 2010.

An earlier draft pledged APEC’s 21 members to maintain “market-oriented exchange rates that reflect underlying economic fundamentals.”

That statement had been agreed at a meeting of APEC finance ministers on Thursday, including China, although it made no reference to the Chinese yuan currency.

An APEC delegation official who declined to be identified said debate between China and the United States over exchange rates had held up the statement at the end of two days of talks.

That underscored strains likely to feature when Obama flies to China later on Sunday after Washington for the first time slapped duties on Chinese-made tires.

Beijing fears that could set a precedent for more duties on Chinese goods that are gaining market share in the United States.

Obama told APEC leaders the world could not return to the same cycles of boom and bust that sparked the global recession.

“We cannot follow the same policies that led to such imbalanced growth. If we do, we will continue to drift from crisis to crisis, a failed path that has already had devastating consequences for our citizens, our businesses, and our governments,” Obama said.

“We have reached one of those rare inflection points in history where we have the opportunity to take a different path — to pursue a new strategy for jobs and growth. Growth that is balanced. Growth that is sustainable.”

Obama’s strategy calls for America to save more, spend less, reform its financial system and cut its deficits and borrowing. Washington also wants key exporters such as China to boost domestic demand.

YUAN ON THE AGENDA Chinese President Hu Jintao has been under pressure to let the yuan appreciate, but in several speeches at APEC he ignored the issue and focused instead on what he called “unreasonable” trade restrictions on developing countries.

One of the key themes when Obama visits China for three days will be the yuan, which has effectively been pegged against the dollar since mid-2008 to cushion its economy from the downturn.

Washington says an undervalued yuan is contributing to imbalances between the United States and the world’s third-biggest economy. China is pushing for U.S. recognition as a market economy and concessions on trade cases that would make it harder for Washington to take action against Chinese products. 

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