■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.
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
TRADE: A mandatory declaration of origin for manufactured goods bound for the US is to take effect on May 7 to block China from exploiting Taiwan’s trade channels All products manufactured in Taiwan and exported to the US must include a signed declaration of origin starting on May 7, the Bureau of Foreign Trade announced yesterday. US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world. On April 12, the Trump administration further exempted computers, smartphones and semiconductors from the new tariffs. In response, President William Lai’s (賴清德) administration has introduced a series of countermeasures to support affected
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College
CROSS-STRAIT: The vast majority of Taiwanese support maintaining the ‘status quo,’ while concern is rising about Beijing’s influence operations More than eight out of 10 Taiwanese reject Beijing’s “one country, two systems” framework for cross-strait relations, according to a survey released by the Mainland Affairs Council (MAC) on Thursday. The MAC’s latest quarterly survey found that 84.4 percent of respondents opposed Beijing’s “one country, two systems” formula for handling cross-strait relations — a figure consistent with past polling. Over the past three years, opposition to the framework has remained high, ranging from a low of 83.6 percent in April 2023 to a peak of 89.6 percent in April last year. In the most recent poll, 82.5 percent also rejected China’s
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