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Stocks way down: As usual, lots of mixed economic signals (but trending downward), and the last day of the quarter only complicates things. Dow is down almost 110 points in early trading.
CIT on the brink: One of the largest lenders for small and medium-size businesses, including many apparel makers in L.A., might be taken over by bondholders under a proposed plan. The alternative could result in the nation's fifth-largest bankruptcy filing. From the WSJ:
The plan sets up a potential showdown between bondholders with debt coming due soon and those whose debt does not come due for years. If the company doesn't receive enough bondholder support, it plans to execute the restructuring in bankruptcy court, the people familiar with the situation said.
GDP revised downward: The U.S. economy contracted at an annual rate of 0.7 percent in the second quarter, less than the 1 percent pace previously estimated. Most everybody expects growth in the third quarter, which ends today. (AP)
Waterfront overhaul approved: L.A.'s Harbor Commission signed off on a $1.2-billion plan that will add shops, restaurants and a controversial cruise terminal near Cabrillo Beach. From the Daily Breeze:
Port officials said the new cruise ship terminal is needed to handle the next generation of larger luxury vessels visiting San Pedro. For now, extra-large cruise ship must back down the Main Channel to get in and out of the cruise terminal at the north end of the port.
C-17 vote delayed: Sen. Jon McCain threw a small monkey wrench into extending the program - and supporting 5,000 Long Beach jobs - because of what he calls pork-barrel spending (which, of course, it is). His efforts aren't likely to go anywhere because the Dems support an extension. (Press-Telegram)
Big bond sale: L.A.'s Unified School District is set to borrow $1.9 billion today in one of the biggest muni sales in several months. Proceeds will fund new facilities and debt refinancing. (DJ)
Liam McGee to join Hartford: The name might ring a bell - he had been based in L.A. as head of Bank of America's statewide operations and later became a senior executive with the bank before stepping down in August. He'll take over as CEO
of Hartford Financial Services Group. (Bloomberg)
Law firm logjam: Summer associates who used to be shoo-ins for full-time work are finding a much tighter job market, the Daily Journal reports.
No matter the offer rate, firms are attempting to avoid the deferrals that happened so prevalently this year by not giving start dates until they are certain about when work will be available. At many of the firms surveyed, the recent summer class is not expected to begin until January 2011 or later.
Firings, not raids: NYT catches up to the recent firings of American Apparel workers who couldn't verify their immigration status. The Obama administration is trying to avoid actual workplace raids, but the effect is the same.
Some workers who are leaving said the company had been a close-knit community for them. Jesús, 30, originally from Puebla, Mexico, said he was hired 10 years ago as a sewing machine operator, then worked and studied his way up to an office job as coordinating manager. "I learned how to think here," said Jesús, who would not reveal his last name because of his illegal status.
Best cities for youngins': L.A. was nowhere to be seen in a WSJ list of the hottest locales for folks just getting out of college. Quite the snub - Washington D.C. and Seattle tied for the top spot, followed by NY, Portland and Austin. Guess nobody wants to be in show business anymore.
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.