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Show PAGE 4 SATURDAY, FEBRUARY 9. 2008 I IS 1 BUSINESS EDITOR News & Notes Grace Leong V V Ijocal Industiy I Dow Jones Nasdaq Final Final 12,182.13 -- 64.87 2304.85 11.82 gleongheraldextra.com 0 EXCHANGING THE DOLLAR S&P500 Gold Silver Final 1331.29 -- 5.62 Fvr ounce $918.40 $12.30 Per ounce $17,075 $0.34 Yen Euro Pound Canadian dollar Mexican peso Friday Thursday 107.38 $1.4506 $1 9455 1.0009 10.7609 107.42 $1.4459 $1.9405 1.0117 1 0.7753 Corporate Giving XanGo donates $50,000 to Utah Catholic group d nutraceuticals company, donated $50,000 LLC, a to the Catholic Community Services of Utah to help meet an increased need for emergency services by the state's working poor and homeless. The funding will be used during the next 12 months in northern and central Utah to provide hot meals, food boxes, rent and utility assistance, and clothing. The group, which helps about 10,000 people in Utah each year, now serves between 800 and 900 lunches a day, up from between 600 and 700 a day. . In addition, the agency provides about 450 food baskets families. per month to "We know there are many people struggling to make it right now," said Bob Freeze, vice president of XanGo. Nearly 120,000 Utahns, or 10 percent of the state's population, including about 70,000 children, live in poverty despite having at least one family member employed. Another 13,000 homeless live in the state. XanGo's gift was facilitated by Operation Kids, an international children's charity based in Salt Lake City.: XanGo Lehi-base- KB Home sued over appraisals Mortgage industry under pressure for progress low-inco- Jonathan Peterson LOS ANGELES TIMES t . I a ! - National Briefing 'E.,,.,:I,'J Consumer confidence sinks even lower WASHINGTON People's confidence in the economy sank even lower amid heightened fears about shrinking job opportunities and the possibility the country is falling into recession. According to the RBC Cash Index, confidence dropped to a mark of 48.5 in early February, from 56.3 last month. The new reading was the worst since the index began in 2002 and surpassed the previous low reached in January. The continued erosion in confidence comes despite the fact that Federal Reserve Chairman Ben Bernanke has gotten much more forceful in cutting interest rates to induce people, to buy more and bolster the economy. The Fed slashed interest rates twice over the span of just eight days in January its most aggressive rate reductions in two decades. The White House and Congress, meanwhile, want to energize the economy by giving rebates to people and tax breaks to businesses. Congress passed an emergency plan Thursday that sends rebates to most taxpayers in an effort to spark the economy. President Bush has indicated he would sign the measure. Polaroid to cut jobs, close factories BOSTON Polaroid Corp, is dropping the technology it pioneered long before digital photography rendered instant film obsolete to all but a few nostalgia buffs, Polaroid is closing factories in Massachusetts, Mexico and the Netherlands and cutting 450 jobs as the brand synonymous with instant images focuses on ventures such as a portable printer for.images from cell phones and Polaroid-brande- d digital cameras, televisions and DVD players. This year's closures will leave Polaroid with 150 employees at its Concord headquarters and a site in the nearby Boston suburb of Waltham, down from peak global employment of nearly 21,000 in 1978. IS' f f .m-- t "" PHELAN M. EBENHACKAssociated right, president of the Florida Association of Mortgage Brokers and of Workman Mortgage Co., goes over a client's mortgage application. Value ofhomes allegedly Mated Peter Y. than neighbors who used ferent appraisers. Hong LOS ANGELES TIMES $475,000 for their dif- house in a KB development in live Oak, north of Sacramento. Peter Fredman, the Boldens' attorney, said a neighbor told the couple they had used their own appraiser and got KB to reduce the price of their home to $408,000, from their contract price of $469,000. Fredman said property values in the area were falling in 2005 and 2006. As a result, houses were often worth less by the time they were built than the price agreed to several months prior in the purchase contracts. To keep houses at their contracted price, KB exaggerated appraisals, Fredman said. Their suit, filed Wednesday in Los Angeles Superior Court, As home prices soared alleges that KB Home and higher earlier this decade, the Countrywide "conspired with buying frenzy was fueled in part by what real estate indus- affiliated appraisers to generate fraudulent" appraisal reports. try experts now claim were This was done, the suit exaggerated or outright fraudulent claims, by comparing sales pricappraisals. es for homes in other KB Home A lawsuit filed by two developments a few miles away couples this week adds a new in the appraisal rather than twist: it claims that Los Angeles builder KB Home and a unit neighboring houses. KB Home issued a statement of lender Countrywide Financial Corp. pumped up appraisThursday saying "we believe als in their Sacramento, Calif that our full and complete indevelopment in order to vestigation will show these al-- : sell homes at higher prices. legations to be without merit." A Countrywide spokesman One couple, Deborah and Lonnie Bolden, claim they paid declined comment. The Boldens in 2006 paid $70,000 more for their home -" say. New statistics released , Thursday by an alliance of : banks and mortgage lenders provided ammunition for both sides in the dispute. The HOPE NOW Alliance said lenders' efforts to stave off foreclosure increased late last year, s of and more than delinquent subprime borrowers received assistance during that period. Loan companies helped 545,000 borrowers with delinquent subprime loans during the second half of 2007, compared with 386,000 in the first half of 2007. two-third- Fraud investigation The now LOS ANGELES Hollywood writers strike could enter its final chapter today when guild members gather in Los Angeles and New York to consider a proposed contract. If writers respond favorably, the walkout that has devastated the entertainment industry could end as soon as Monday. Writers were wavering between hope and skepticism as they prepared to learn details of the deal for the first time. tyf DETROIT When thousands of U.S. auto dealers gather in San Francisco this weekend, much of the talk will be about just getting through 2008. The obstacles include a shaky economy, volatile stock market and tightening credit, setting up what economists are predicting could be the worst sales year in morethan a decade. With word Friday that Chrysler may have plans to thin d automakits dealership ranks and the other two ers looking to do the same, those left to sell another day and car buyers may benefit as well. may end up stronger .. Press Ritch Workman Deal approval would end writers strike Auto dealers prepare for obstacles in '08 WASHINGTON Facing pressure from Congress and consumer advocates, lenders are pledging to provide stronger evidence of their progress in reworking costly home loans to prevent borrowers from going into foreclosure. Under a plan endorsed by the White House, lenders have agreed to freeze interest rates on certain troubled mortgages and to guide qualified borrowers into more affordable loans. The plan is intended to avert massive foreclosures as loans adjust to higher payments. But since the effort was first announced by President Bush in December, there has been scant evidence to determine its effectiveness, critics - yO. ' J I Vr-- f . 1 U.S.-base- v STOCKS OF LOCAL INTEREST Yesterday's performance SYM COMPANY AA ALCOA INC LAST CHANGE 33.76 0.98 ABSY ABSOLUTESICYINC 0.036 0.001 LAST CHANGE SYM COMPANY MU MICRON MYGN Myriad Genetics, 6.69 0.43 Ire 39.71 0.33 S SUNSHINE. 8.51 0.52 Inc. 4.48 0.2201 TECHNOLOGY ABX BARRICKGOLDCP 50.10 1.99 NATR NATURE AEP AMER ELECTRIC POW 43.16 0.52 NETM NetManage, AIG AMER INTL GROUP 50.68 0.97 N0VL Novell, Inc. 6.55 0.04 AMD ADV MICRO DEVICES 6.34 0.25 NUS NU SKIN ENT INC 16.33 0.10 AMGN Amgmlnc 46.56 0.13 NWN NORTHWEST 47.50 0.06 BAC BK OF AMERICA CP 42.16 1.21 OMTR Omniture, BAM BRCOKFIELD ASSET 31.48 0.63 PCG PG&E INC NAT GAS Inc. CP BU BALL CP 44.37 0.02 Q QWEST BMY BRISTOL MYERS SQIBB 23.07 0.27 R2 RASER TECHNOLOGIES C CITIGROUP 26.03 0.67 SC0XQ SCO GRP INC (THE) CMCSK Comcast Corporation Costco Wholesale 1686 0.32 SHLD, Sears Holdings COST U 1.51 Sll SMITH INTL INC CVX CHEVRON 79.26 0.52 SKYW DAL DELTA AIR UNES NEW 18.19 0.30 SNTO SkyWest, Inc. SENTOCORP DrS WALT 32.12 0.40 STR QUESTAR DNEX Dionex 78.43 0.63 SY SYBASE INC INC CORP Corporation LM Ericsson ERIC ETR ' ENTERGY FC ' FRANKUN Telephone CP COVEY CO GE GEN ELECTRIC CO HRB H R HSC Henry Scheialnc INTL BUSINESS IBM INTC BLOCK INC ' Intel MACH Corporation 63 C0MM INTL INC ' 25.98 2.38 39.75 0.14 5.13 0.15 9.25 0.15 0.065 0.005 ,.98.59 57.64 4.09 25.35 0.27 0.09 0.00 1.46 51.39 1.22 27.38 0.10 INC 36.37 0.63 CP 20.29 0.30 T AT&T 104.30 1.06 TGT TARGET CP 52.50 1.60 7.62 0.03 TRV THE TRAVELERS CO 46.56 0.69 33.84 0.39 UDR UDRINC. 22.64 0.59 18.75 0.12 UNH UNITEDHEALTH 48J0 0.83 57.90 0.44 USB US BANCORP 32.34 0.28 103.27 0.93 USEG 0.22 USNA US. Energy Corp. 191 USANA Health Sciences 38.15 0.01 20.27 6 90 0.33 UTMD Utah Medical Products 30.02 0.00 GROUP 1.99 JBLU JetBlue KP PENNEY J C CO HOLDIN 47.63 0.19 VZ VERIZON 36.42 0.53 JWN NORDSTROM 37.10 0.57 WB WACHOVIACP 34.60 0.58: lee lee enterprises 11.91 0.40 wen 'wendysintlinc 23.15 o:44 LUV SOUTHWEST 12.80 0.10 WFC WELLS FARGO & CO 29.48 0.98 HKK MCKESSONCORP 57.68 0.02 WMT WAL MART STORES 48.76 1.08 MER MLCOCMNSTK 52.19 1.46 WNI SCHIFF NUTRIT INTl 5.94 0.01 MER-- J MERRILL LYNCH 21.50 0.25 X UNITED STATES STEEL 98.99 2.09 MMSI Merit Medical Systems Microsoft Corporation 16.07 0.10 Xa XCEL ENERGY INC 20.61 0.01 28.56 0.45 ZK)N Zions 51.91 1.00 MSFT Airways INC AIRUNES jit- - of selected publicly traded companies COMMUN Bancorporation ii MICHEL EULERAssociated Press Jerome Kerviel's lawyer, Elisabeth Meyer, answers media questions after a Paris court ordered French trader Kerviel to be jailed while investigations continue into the billions in losses he allegedly caused at Societe Generale bank. French court orders trader behind bars Pierre-Antoin- e THE Souchard ASSOCIATED PRESS A French trader was ordered into custody Friday while investigations continue into the billions in losses he allegedly caused at Societe Generale bank. A probe into the case broadened as well, with police taking into custody a brokerage employee who reportedly had been in contact with Jerome fuKerviel, the PARIS tures trader. Prosecutors sought to jail Kerviel to keep him from con tacting accomplices, if he had any, and from jeopardizing what promises to be a long and complex investigation. Judges allowed Kerviel to go free last month after his lawyer argued he did not pose a flight risk. Kerviel plans to appeal the court decision, said lawyer Raphael Colas, who works with Kerviel's attorney, Elisabeth Meyer. News that police had ar-- . rested a second person, an employee at a brokerage arm of Societe Generale, again raised questions about whether Ker viel acted alone. Societe Generale, one of France's biggest banks, has said Kerviel did not appear to have accomplices when he made massive unauthorized bets on European futures markets that the bank said cost it more than $7 billion to illegal in terms of the law," the official said, confirming a report that first appeared in Le Monde newspaper. The employee from brokerage Newedge, a 0 joint venture between Societe Generale and bank Calyon, was taken into custody Thursunwind. day and was still being held A judiciary official said the Friday, according to the judibank has turned over new ciary official who asked not evidence, including a message to be identified because of the sent to Kerviel through the sensitivity of the case. Police bank's computer system by investigators also searched the broker now in custody. the Newedge office on Paris's The message, sent Nov. 30, Champs-Elyse'e- s in the case, read: "You have done nothing the official said. 50-5- |