Wednesday February 5 Housing and Economic stories

TOP STORIES:

US court dismisses French Goodyear plant closure lawsuit - (news.yahoo.com) US tiremaker Goodyear has won a court battle after a US federal judge threw out a lawsuit by French workers fighting to keep their jobs by preventing a plant closure in Amiens. Goodyear announced a year ago that it was closing the factory in northern France, which employs 1,173 people, after years of negotiations with unions failed to come up with a solution to save jobs. Unions launched a series of legal proceedings against the company, but to no avail. In a ruling released Wednesday, US District Judge Sara Lioi said the workers' claim "suffers from numerous deficiencies, not the least of which is that it fails to allege an actual breach of the relevant agreement." Lawyers for the workers said they planned to appeal. "We are hopeful that we will obtain a different outcome on appeal," attorneys Bob Gary and Philippe Pradal said in a statement. "The issues raised by this case are important in France and the United States."

China trust firm warns shadow bank loan may not repay-newspaper - (www.reuters.com)  The trust firm responsible for a troubled high-yield investment product sold through China's largest banks has warned investors they may not be repaid when the 3 billion-yuan ($496 million)product matures on Jan. 31, state media reported on Friday. Investors are closely watching the case to see if it will shatter assumptions that the government and state-owned banks will always protect investors from losses on risky off-balance-sheet investment products sold through a murky shadow banking system. Based on a loan to an unlisted coal company, the now distressed product was created by China Credit Trust Co Ltd, while Industrial and Commercial Bank of China , the world's largest bank by assets, helped to market it to wealthy investors in central Shanxi province.

347 Flagstar workers lose jobs as mortgage business plummets; most in Michigan - (www.freep.com) Troy-based Flagstar Bancorp laid off 347 employees corporate-wide this week, the bulk of them in Michigan, as part of a restructuring strategy. Alessandro (Sandro) DiNello, Flagstar’s president and CEO, said Thursday the bankis trimming its workforce to reflect a decline in mortgage origination activity. Mortgage lenders across the country have cut back on staff in recent months. Flagstar also has been de-risking its balance sheet and resolving legacy problems. Late in 2013, for example, it agreed to settle disputes with government-sponsored mortgage lenders related to bad mortgage loans the bank made during the housing bubble and prior to collapse.

ICBC Won’t Repay Troubled China Trust Product, Official Says - (www.bloomberg.com) Industrial & Commercial Bank of China Ltd. is rejecting calls to bail out a troubled 3 billion-yuan ($495 million) trust product, a bank official with knowledge of the matter said, stoking concern that the nation’s first default on such high-yield investments may be looming. ICBC, which distributed the product sold by a trust company to raise funds for Shanxi Zhenfu Energy Group, won’t assume primary responsibility after the coal miner collapsed, according to the executive, who asked not be identified while negotiations continue. China’s largest bank may be forced to repay investors, most of whom were Beijing-based ICBC’s own private banking clients, Guangzhou Daily reported yesterday.

DIA may be asked to ante up $100M to break free from city - (www.freep.com) Detroit emergency manager Kevyn Orr met with Detroit Institute of Arts leaders for the first time Thursday and told them they may have to make a substantial contribution to a fund that would provide hundreds of millions for city pensioners and protect DIA art from being sold as part of the city’s bankruptcy, according to a person familiar with Orr’s plans. Orr did not push for a specific figure, but the city believes $100 million over 20 years “is a number the DIA can get to,” the source said. Museum leaders said Thursday that figure was “completely unfeasible.” The parties met to discuss details of a federally mediated deal that would raise $330 million from nine foundations and perhaps another $350 million from the state to create the rescue fund and spin off the city-owned museum into a separate nonprofit.

OTHER STORIES:

Numerous Retailers Said Hit by Data Hacking Attacks - (www.bloomberg.com)  

Extreme Weather Wreaking Havoc on Food as Farmers Suffer - (www.bloomberg.com)  

BOJ Silence on Exit Strategy Stokes Concern as Prices Rise - (www.bloomberg.com)  

JPMorgan Sees Asian Currencies Extending Rout on Economy - (www.bloomberg.com)  
China bank regulator urges banks to control shadow-bank risks - (www.reuters.com)  

IPO Fund Lures Record Money in Best Year Since 1999 - (www.bloomberg.com)