Former Fla. Regions Bank Pres Wins RMK Arbitration Claim

Two brothers, one of whom is a former president of a group of Regions banks in Florida, have won almost $700,000 from a financial industry panel hearing arbitration claims involving a group of former Regions Morgan Keegan mutual funds. The brothers, Ed and Buck King, are 72 and 68 years old, respectively, and live in Alabama. They invested in several RMK funds that lost the majority of their value concurrent with the credit crisis that began in 2007. Memphis-based Morgan Keegan is a unit of Alabama-based Regions Financial Corp

Humphreys Blvd. BP Sells for $1.6 Million

A BP gas station and convenience store at 15 Humphreys Blvd. in the River Oaks area of East Memphis has sold for $1.6 million to an entity called MAC-HTA Holdings LLC. The sale closed Tuesday and the seller was Kelley-Rasch Enterprises LLC.

The property houses a BP gas station, deli and convenience store. It was built in 1995 and sits on about one acre at the southwest corner of the intersection of Humphreys and Walnut Grove Road in the Humphreys Boulevard Planned Development.

The Shelby County Assessor of Property’s 2009 appraisal is $1.3 million.

Attempts to reach the buyer and seller were unsuccessful by press time.

Source: The Daily News Online & Chandler Reports

Commission Could Approve Mortgage Suit

Members of the Shelby County Board of Commissioners may vote today on an ordinance passed in committee last week that would give the final round of approval needed for the county to file a lawsuit against national mortgage lenders.

The county is eyeing the suit against national lenders that are believed to have contributed to the foreclosure crisis in Shelby County by steering high-cost loan products to minority neighborhoods. The city and county already agreed to the suit in principle, but details still are being worked out.

Today’s commission meeting will begin at 1:30 p.m. at the Shelby County Administration Building, 160 N. Main St.

Metal Dealers Cited For Failure to Comply

Scrap-metal dealers Metal Management Memphis LLC and H. Iskwitz & Co. Inc. were cited Thursday in Memphis City Court for failure to comply with a city ordinance requiring them to obtain a permit to recycle scrap metals such as copper and also to “tag and hold” purchased metals before processing them.

The ordinance prevents scrap-metal dealers from selling metal within 10 days of receiving it, bans quick cash sales and curbs the sale of coils from air conditioners. Though many local scrap-metal dealers are complying with the ordinance, which passed in 2007, some were opposed to it because they said it hindered their business practice.

Aubrie Kobernus, director of governmental affairs for the Memphis Area Association of Realtors, is part of a coalition of area businesses and nonprofit organizations pushing for full compliance of the ordinance. She said the companies would be fined “$50 per day plus costs each day until they come into compliance.”

“We were happy with the outcome,” she said.

Attorney Paul Morris spoke in court on behalf of the coalition, but members were not allowed to give testimony in the matter.

It was another victory in the fight against scrap-metal theft, but Kobernus said she expects the companies to file an appeal in Shelby County Circuit Court.

“Unfortunately we don’t think it will be fully resolved for a while,” she said. “But it’s another good step in the right direction.”

To read The Daily News’ story on this matter, see Thursday’s edition.

Wholesale Inventories Fall More Than Expected

Wholesalers slashed inventories for a seventh straight month in March as businesses struggled to get stockpiles in line with plunging sales.

The U.S. Commerce Department reported Friday that wholesale inventories dropped 1.6 percent in March, much larger than the 1 percent fall that analysts had expected. That followed a 1.7 percent drop in February, the largest monthly decline on records that go back 17 years.

Wholesalers also saw sales plunge 2.4 percent in March, the fifth decline in six months.

The drawdown in inventories at all business levels has contributed to a sharp contraction in the economy. The gross domestic product fell at an annual rate of 6.1 percent in the first quarter of this year after a 6.3 percent drop in the final three months of last year, the steepest six-month decline in a half-century.

The ratio of wholesale inventories to sales edged up to 1.32 in March, meaning it would take 1.32 months to exhaust inventories at the March sales pace. That was up from an inventory-to-sales ratio of 1.12 in March 2008.

But economists are hopeful the cutbacks in stockpiles mean that businesses are getting their inventories more in line with sales and that a rebound in consumer demand will trigger increased production.

Wholesale inventories are goods held by distributors who generally buy from manufacturers and sell to retailers. They make up about 25 percent of all business stockpiles. Factories hold another third of inventories and retailers hold the rest.

Consumer spending, which accounts for about 70 percent of total economic activity, posted big drops in the last half of 2008 but grew in the first quarter of this year. That’s one of the positive signs economists have used to support their view that a recovery could occur in the second half of 2009.

Williams Street Grocery Closes, Files for Bankruptcy

The owner of Williams Street Grocery & Deli has filed for bankruptcy and closed the business at 755 Williams Ave. near LeMoyne-Owen College, according to The Daily News Online, www.memphisdailynews.com.

Otha Johnson, the owner, listed total liabilities of $294,360 and assets of $229,400 in a Chapter 13 bankruptcy filing on Thursday. However, the business was closed last month and a “for sale by owner” sign erected.

Creditors included American General, Midland Mortgage, ADT, Allied Waste, AT&T, Capital One, Chase, Chrysler Credit, Hanes Electric, Wells Fargo, Money Gram International and others.

The grocery had a kitchen in the back that specialized in Southern soul food. It had been in operation since 2001.

Fannie Mae Seeks $19B In US Aid After Q1 Loss

Fannie Mae issued a grave warning about its future on Friday, saying it needs $19 billion in additional government aid as job losses grow and risky loans made during the housing boom go bad at a disquieting pace.

The mortgage finance company, which already got a $15 billion government bailout in March, warned it may need even more money and won’t be profitable for the foreseeable future.

In a regulatory filing the company said, “there is significant uncertainty as to our long-term financial sustainability.” Even more government aid, it added, “may not be sufficient to keep us in a solvent condition.”

Fannie Mae posted a quarterly loss of $23.2 billion, or $4.09 per share. That compares to a loss of $2.5 billion, or $2.57 a share, in the year-ago period.

The government, which seized control of Fannie Mae and its sibling company Freddie Mac last September, has already spent about $60 billion to prop up the two companies. Fannie Mae’s request Friday brings the total to $79 billion.

The Obama administration estimates the taxpayer bill for Fannie and Freddie will hit $147 billion out of a potential $400 billion by the end of September 2010.

But some analysts think that figure is optimistic, especially as Fannie and Freddie are called upon to put in place the government’s plans to refinance or modify up to 9 million home loans.

While using Fannie and Freddie for that purpose should help stabilize the real estate market, “that just means that their losses will be even more,” potentially exceeding the government’s $400 billion lifeline, said Peter Wallison, a senior fellow at the American Enterprise Institute.

Fannie Mae and Freddie Mac play a vital role in the mortgage market by purchasing loans from banks and selling them to investors. Together, Fannie and Freddie own or guarantee almost 31 million home loans worth about $5.5 trillion. That’s about half of all U.S home mortgages.

The two companies lowered their standards for borrowers during the real estate boom and are reeling from the bust.

Morgan Freeman to Host Fundraiser for The MED

Morgan Freeman is expressing gratitude for the treatment he received at the Elvis Presley Memorial Trauma Center at the Regional Medical Center at Memphis following a car accident by taking part in a fundraiser for The MED Foundation.

The Oscar-winning film star and Mid-South native will mingle with people at the “Zero to 60” event on June 6 from 6 p.m. to 9 p.m. at the Hard Rock Café on Beale Street. Tickets are $150 for individuals or $250 for couples. The event coincides with the 25th anniversary of the trauma center being named in honor of Presley.

The event will feature live music, food and a silent auction of movie and music memorabilia.