■BANKING
FirstFed files for Chapter 11
FirstFed Financial Corp, a savings and loan holding company whose First Federal Bank of California was closed last month by US regulators, has filed for Chapter 11 bankruptcy protection. FirstFed listed assets of US$4.47 million and debt of US$159.7 million in a filing yesterday in US Bankruptcy Court in Woodland Hills, California. The Federal Deposit Insurance Corp (FDIC) said on Dec. 18 that First Federal’s 39 branches would be taken over by OneWest Bank FSB, the Pasadena, California-based bank created out of the former IndyMac Bancorp. First Federal had about US$6.1 billion in assets and US$4.5 billion in deposits as of Sept. 30, the FDIC said. FirstFed, ranked among California’s 10 biggest banking companies, accumulated losses during the past two years as falling home prices led option adjustable-rate mortgages to reset at higher monthly rates than borrowers could afford.
■TELECOMS
Court approves Nortel sale
Nortel Networks Corp won court permission to auction its Internet telephone business with an opening bid of US$282 million from Genband Inc, which makes equipment for Internet calling. Bankruptcy judges in the US and Canada approved rules for the auction, including as much as US$13.6 million in fees for Genband, which is co-owned by Equity Partners III LP, an investment manager for JPMorgan Chase & Co. The two judges, acting in a joint hearing linked by audio and video, overruled an objection to the fees, agreeing with Nortel that the payments were needed to lock in Genband’s bid. The incentive fees were necessary because “this is a fragile business,” Nortel chief strategy officer George Riedel said on Wednesday in court in Wilmington, Delaware. The unit lost as much as US$17 million in the last quarter and the outlook for future business is becoming less certain, he said.
■BANKING
Ex-SG trader to face trial
Former Societe Generale (SG) trader Jerome Kerviel is expected to stand trial in June on charges connected to a multibillion-euro trading scandal, a Paris court said. Societe Generale accused Kerviel of betting tens of billions of euros of the bank’s money without permission, which led to almost 5 billion euros (more than US$7 billion) in losses once the bank unwound his positions in January 2008. Kerviel argues his superiors knew about his risky transactions. SG says he acted alone. Kerviel was charged with forgery, breach of trust and unauthorized computer use. He faces up to five years in prison and 375,000 euros in fines, if convicted.
■DEFENSE
Lockheed to cut 1,200 jobs
US global security giant Lockheed Martin said on Wednesday it would shed about 1,200 US jobs as part of a restructuring within its electronics systems business. Lockheed Martin announced the job reductions as it unveiled the name and senior-level organizational structure for a new business created in a realignment of two prior stand-alone businesses. Mission Systems & Sensors (MS2) was launched on Jan. 1 and combines the former Maritime Systems & Sensors, supporting maritime forces, with Systems Integration – Owego. The defense industry giant said the new business retains a “unique breadth and depth of support for maritime forces” paired with a significantly expanded portfolio of capabilities in products, processors, and integration expertise. Lockheed Martin employs about 140,000 people worldwide.
Beijing’s continued provocations in the Taiwan Strait reveal its intention to unilaterally change the “status quo” in the area, the US Department of State said on Saturday, calling for a peaceful resolution to cross-strait issues. The Coast Guard Administration (CGA) reported that four China Coast Guard patrol vessels entered restricted and prohibited waters near Kinmen County on Friday and again on Saturday. A State Department spokesperson said that Washington was aware of the incidents, and urged all parties to exercise restraint and refrain from unilaterally changing the “status quo.” “Maintaining peace and stability across the Taiwan Strait is in line with our [the
EXTENDED RANGE: Hsiung Sheng missiles, 100 of which might be deployed by the end of the year, could reach Chinese command posts and airport runways, a source said A NT$16.9 billion (US$534.93 million) project to upgrade the military’s missile defense systems would be completed this year, allowing the deployment of at least 100 long-range Hsiung Sheng missiles and providing more deterrence against China, military sources said on Saturday. Hsiung Sheng missiles are an extended-range version of the Hsiung Feng IIE (HF-2E) surface-to-surface cruise missile, and are believed to have a range of up to 1,200km, which would allow them to hit targets well inside China. They went into mass production in 2022, the sources said. The project is part of a special budget for the Ministry of National Defense aimed at
READY TO WORK: Taiwan is eager to cooperate and is hopeful that like-minded states will continue to advocate for its inclusion in regional organizations, Lai said Maintaining the “status quo” in the Taiwan Strait, and peace and stability in the Indo-Pacific region must be a top priority, president-elect William Lai (賴清德) said yesterday after meeting with a delegation of US academics. Leaders of the G7, US President Joe Biden and other international heads of state have voiced concerns about the situation in the Strait, as stability in the region is necessary for a safe, peaceful and prosperous world, Lai said. The vice president, who is to be inaugurated in May, welcomed the delegation and thanked them for their support for Taiwan and issues concerning the Strait. The international community
COOPERATION: Two crewmembers from a Chinese fishing boat that sank off Kinmen were rescued, two were found dead and another two were still missing at press time The Coast Guard Administration (CGA) was yesterday working with Chinese rescuers to find two missing crewmembers from a Chinese fishing boat that sank southwest of Kinmen County yesterday, killing two crew. The joint operation managed to rescue two of the boat’s six crewmembers, but two were already dead when they were pulled from the water, the agency said in a statement. Rescuers are still searching for two others from the Min Long Yu 61222, a boat registered in China’s Fujian Province that capsized and sank 1.03 nautical miles (1.9km) southwest of Dongding Island (東碇), it added. CGA Director-General Chou Mei-wu (周美伍) told a