Nine bailed-out banks see drops in lending
WASHINGTON --- The Treasury Department said Monday that new lending plummeted in January at the nine largest banks that have yet to repay their taxpayer bailouts.
The Treasury's monthly survey of bank lending shows overall new loan origination dropped 35 percent from December's level. The Treasury says the drop "may be partially explained by large increases" in late 2009.
The survey also shows average loan balances at the nine banks were 2 percent higher than in December -- bringing them to their highest level since September.
The banks are: Citigroup Inc., Comerica Inc., Fifth Third Bancorp, Hartford Financial Services Group Inc., KeyCorp, Marshall & Ilsley Corp., PNC Financial Services Group Inc., Regions Financial Corp. and Suntrust Banks Inc.
Ex-CEO is charged with defrauding bailout fund
NEW YORK --- The former president of a small Manhattan community bank on Monday became the first person accused of trying to defraud the federal bailout program.
Prosecutors contend that Charles Antonucci Sr. stole so he could live a lavish lifestyle that included a Super Bowl junket. He was arrested Monday.
Antonucci, 59, was charged with self-dealing, bank bribery, embezzlement and fraud. If convicted, he could face up to 260 years in federal prison.
Authorities said the rip-off targeted the New York State Banking Department, the Federal Deposit Insurance Corp. and the Troubled Asset Relief Program. Antonucci is accused of using false information to request $11.3 million in bailout funds.
Antonucci resigned last year as president of The Park Avenue Bank. The bank was taken over by the FDIC on Friday and opened Saturday as a new institution with its half billion dollars in assets protected, authorities said.
Calvin Klein's parent company buys Hilfiger
NEW YORK --- Two iconic American clothing labels -- Tommy Hilfiger and Calvin Klein -- are coming together under one roof.
Calvin Klein parent Phillips-Van Heusen said Monday it plans to purchase Tommy Hilfiger for about $3 billion in cash and stock.
The deal adds a prominent brand to Phillips-Van Heusen's stable, which also includes Izod and Arrow. It's expected to help Phillips-Van Heusen introduce some of its brands overseas, where 65 percent of Hilfiger's business is generated.
Clothing company analysts expect the Hilfiger brand to expand beyond its stronghold in Europe into Asia and South America, while bolstering its U.S. business.
In other news
THE OBAMA ADMINISTRATION'S pay czar is reducing 2010 compensation for top executives at GMAC Inc. because the auto finance giant continues to lose money and has no strategy for repaying its $16.3 billion taxpayer bailout, according to people familiar with the negotiations.
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