Tag Archives: Reuters

US Bank settles overdraft lawsuit for $55M

US Bank, the newest member of Knoxville’s banking community, has agreed to pay $55 million to settle a lawsuit alleging the bank manipulated overdraft fees it charged its customers.

The Minneapolis-based lender entered the Knoxville market about five months ago when it acquired the assets of BankEast after it was shut down by government regulators.

US Bank is one of the largest commercial banks in the country.

Continue reading

Big pay day for Alcoa exec despite pay cut

The second half of 2011 wasn’t kind to Alcoa Inc.’s stock price and Chairman and CEO Klaus Kleinfeld paid the price.

032610alcoa9_mc12884.JPGBecause his base pay is performance based, the aluminum company slashed Kleinfeld’s annual salary 45 percent to a relatively paltry $1.5 million when the stock slumped.

Don’t shed too many tears for Kleinfeld, though. His total compensation for the year was more than $14 million, Reuters reported. That includes salary, stock options, pension and other goodies.

I want that kind of job — take a 45 percent pay cut and still bank millions.

Reuters: Alcoa CEO’s awards cut on poor stock performance

Photo: Klaus Kleinfeld

Reuters: S&P places Xinergy on CreditWatch

A mild winter hasn’t been good for Knoxville-based coal company Xinergy, says Standard and Poor’s.

The ratings agency said it is placing its Xinergy ratings on CreditWatch with negative implications.

“The CreditWatch listing reflects our concern that  weak demand for thermal coal due to an unseasonably warm winter in the company’s regional end market result in lower-than-expected 2012 earnings, leading to additional deterioration of the company’s fragile liquidity position,” according to a report on the Reuter’s website.

Xinergy’s key has mining operations are in West Virginia and Kentucky. The company provides coal to electric utilities and industrial users.

Read more from Reuters here.

 

Analysts look for clues in Alcoa cutback

Alcoa Inc.’s announcement that it would cut global smelting capacity 12 percent in response to falling aluminum prices is being sliced and diced today as analysts debate what to expect when Alcoa releases its quarterly earnings report on Monday.

Company shares were down more than 2 percent in late morning trading

Reuters quotes analyst Tony Rizzuto, of Dahlman Rose & Co., who sees the smelting reduction “as positive for Alcoa and the industry as it could lead to a more balanced supply/demand environment and provide some stability to aluminum pricing.”

Continue reading

FedEx, Foward Air looking to buy competitors?

With cash on hand and the economy growing again, a pair of Tennessee trucking companies are on the prowl for competitors they can buy, according to a recent Reuters report.

Memphis-based FedEx and Greeneville-based Forward Air are among a handful of logistics companies cited in the report as looking for growth through acquisition.

“I think we are going to see a very active consolidation wave over the next 24-36 months,” Tom Connolly, managing partner at investment banking firm Eve Partners, told Reuters.

If the consolidation speculation is right, it will boost the companies’ stock, the report says.

Read the full story here.