Biz bits

3 Georgia banks shut by federal regulators

WASHINGTON --- Regulators on Friday shut down Ohio's AmTrust Bank, the fourth-largest bank to fail this year. They also closed five others -- including three in Georgia -- bringing to 130 the number of U.S. bank failures this year.

The Federal Deposit Insurance Corp. took over AmTrust Bank, based in Cleveland, with about $12 billion in assets and $8 billion in deposits. Its failure is expected to cost the federal deposit insurance fund an estimated $2 billion.

Also seized were three Georgia banks: Buckhead Community Bank, based in Atlanta, with $874 million in assets and $838 million in deposits; First Security National Bank, based in Norcross, with $128 million in assets and $123 million in deposits; and Tattnall Bank, of Reidsville, with assets of $49.6 million and deposits of $47.3 million.

Benchmark Bank, based in Aurora, Ill., with $170 million in assets and $181 million in deposits, also was closed, as was Greater Atlantic Bank, of Reston, Va., with $203 million in assets and $179 million in deposits.

Depositors' money -- insured up to $250,000 per account -- is not at risk, with the FDIC backed by the government. The FDIC still has about $21 billion in loss reserves apart from the insurance fund.

FDA left unsatisfied by painkiller safety steps

WASHINGTON --- Pharmaceutical executives laid out plans Friday to prevent the misuse of prescription painkillers, under pressure from regulators trying to stop hundreds of fatal overdoses each year.

However, Food and Drug Administration officials said the proposals were short on specifics and that more work is needed before any measures are put in place.

Johnson & Johnson, King Pharmaceuticals and other drugmakers proposed using patient medication guides, letters to doctors and additional physician training to curb inappropriate use and prescribing of painkillers.

The FDA sent letters to 16 companies in February ordering them to design "risk management" plans for their drugs.

Kraft brings offer to Cadbury shareholders

PORTLAND, ORE. --- Kraft Foods Inc. took its $16.3 billion hostile takeover offer for Cadbury PLC straight to shareholders of the British candy company Friday.

The deal is nearly unchanged from an earlier offer that was rejected by Cadbury. By putting it directly in shareholder hands, Kraft starts the clock on a series of regulatory deadlines to get the majority support it needs and might flush out rival bids.

Kraft announced in September that it proposed a takeover of Cadbury and formally issued the bid in November. Cadbury immediately rejected the offer, saying it undervalued the company.

Verizon questioned about fee increase

NEW YORK --- The Federal Communications Commission on Friday asked Verizon Wireless why it recently doubled the fees it charges customers when they break contracts on smart phones.

In November, the carrier raised the maximum early contract termination fee for smart phones to $350 from $175. Like other carriers, Verizon subsidizes the cost of the devices for contract-signing customers, then expects to make that money back in service fees over the term of the contract.

The FCC's letter to Verizon asks how consumers will know whether the increased fee applies to their phone, and whether it's spelled out anywhere except in the formal customer agreement.