Cousin Sam: In the news, Thursday, April 11, 2013

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WED 10 INDEX FRI 12

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from Bloomberg

Tata's Nano, the World's Cheapest Car, Is Sputtering

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from iFIBER ONE News

1161st Transportation Company takes to the sand dunes

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from Investor's Business Daily

6 Ways Obama's Budget Is Worse Than Everyone Thinks

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from The Spokesman-Review

Gun control bill clears first Senate hurdle
Conservative efforts to block bill fail

Gun legislation has momentum
Bipartisan effort in Senate expands background checks

Hagel defends proposed cuts in defense spending

Obama budget a mix of spending, saving
Entitlement changes, tax hikes included

Fewer small companies offer health insurance

Police chief fills four of 13 exempt positions

Rebel links to Al-Qaida complicate aid to Syria
Moderate opposition leaders seeking more help from West

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In brief: From Wire Reports:

Cyprus’ banks may need help later on, commission warns

Berlin – A dramatic contraction in Cyprus’ economy could result in the nation’s troubled banks requiring additional financial help, the European Commission warned Wednesday.

It said Cyprus is facing several bleak years, with the economy projected to shrink by a cumulative 12.5 percent this year and in 2014 as the small eurozone state attempts to slim down its banking sector. Economic growth is not expected to return until 2015.

“The weak economic outlook may potentially also lead to additional financing requirements for recapitalizing banking institutions,” the commission wrote in its draft report on the sustainability of Cyprus’ public debt.

The report, prepared in conjunction with the European Central Bank, comes ahead of Friday’s meeting of eurozone finance ministers in Dublin, which is due to consider the $13 billion bailout deal Cyprus agreed on with international lenders last month.

Uruguay becomes 12th country to legalize gay marriage

Montevideo, Uruguay – Uruguayan lawmakers voted Wednesday to legalize gay marriage, making the South American country the third in the Americas to do so.

Supporters of the law, who had filled the public seats in the legislative building, erupted in celebration when the results were announced. The bill received the backing of 71 of the 92 members of the Chamber of Deputies present.

President Jose Mujica, whose governing Broad Front majority backed the law, is expected to put it into effect within 10 days.

Nationalist Sen. Gerardo Amarilla opposed the law, saying it “debases the institution of marriage” and affects the family, especially in its “role in procreation.”

The vote makes Uruguay the third country in the Americas after Canada and Argentina to eliminate laws making marriage, adoption and other family rights exclusive to heterosexuals. In all, 12 nations around the world now have taken this step.

ConocoPhillips won’t drill in Arctic in 2014

Anchorage, Alaska – ConocoPhillips Alaska announced Wednesday it will not drill in Arctic waters off Alaska’s northwest shore in 2014.

Environmental groups hailed the decision and said the experience of Royal Dutch Shell PLC in 2012 demonstrated that oil companies are not prepared to drill in the fragile Arctic environment.

ConocoPhillips said uncertainties of evolving federal regulatory requirements are the reason for backing off.

“While we are confident in our own expertise and ability to safely conduct offshore Arctic operations, we believe that more time is needed to ensure that all regulatory stakeholders are aligned,” said ConocoPhillips Alaska President Trond-Erik Johansen in the prepared statement.

Spokane City Council OKs land deal with airport

Spokane County’s loss of more than $1 million in a land deal with the Spokane International Airport is complete.

The Spokane City Council, which along with the Spokane County Commission must approve major airport financial decisions, unanimously approved the deal on Monday. County commissioners approved the $1.75 million sale last month.

In 2008, the county paid $3.2 million for nearly 400 acres between the airport and Fairchild Air Force Base to relocate a rail line that crossed the base and protect the base from encroaching development.

Part of the county’s 2008 land purchase became controversial because it included 150 acres of rock mining land sold by John Condon Jr., an older brother of Spokane Mayor David Condon, for $600,000. John Condon’s company, Northwest Industrial Services, bought the land in 2001 for $65,000. Supporters said the value had increased because Condon had acquired mining rights.

Allegiant suspending nonstop Hawaii flights

Allegiant Air said it will temporarily halt flights to Hawaii from Spokane and several other U.S. cities, including Boise and Eugene.

The last Spokane flight to Honolulu will leave Aug. 10.

Allegiant launched the weekly nonstop flights to Hawaii from Spokane in February.

The Las Vegas-based airline said it will suspend flights from Boise; Eugene; Phoenix; Fresno, Calif.; Stockton, Calif.; and Santa Maria, Calif. The flight originating in Boise stops in Spokane, then heads to Oahu.

“It’s a seasonal suspension of service” related to declining travel during the late summer and fall, Allegiant spokeswoman Jessica Wheeler said.

“Allegiant can offer low fares in large part because we respond to the changing leisure travel demand,” Wheeler said.

The airline’s three-days-a-week service to Honolulu from Las Vegas and twice-a-week service to both Maui and Honolulu from Bellingham will not be affected.

Wheeler said the airline expects to resume the flights to and from Hawaii in the winter and during the busy spring.

AmericanWest Bank completes largest buyout

AmericanWest Bank completed its $16.6 million purchase of an Oregon bank this week, adding 32 branches to its network.

Spokane-based AmericanWest now has a major presence in Oregon and California after acquiring PremierWest Bancorp of Medford. The deal includes AmericanWest also repaying the U.S. Treasury’s $41.4 million investment in PremierWest as part of the Troubled Asset Relief Program.

AmericanWest now has 112 branches across five states and assets of $3.8 billion. The PremierWest buyout is its largest to date.

Home foreclosures down, but not in Washington

LOS ANGELES – The number of U.S. homes repossessed by lenders last month fell to the lowest level in more than five years, the latest evidence that the nation’s foreclosure crisis is abating.

While some states still saw increases in homes taken back by banks, nationally home repossessions fell 3 percent in March from the previous month and were down 21 percent from a year earlier, foreclosure listing firm RealtyTrac Inc. said today.

Thirty-four states posted annual declines in completed foreclosures. Among those bucking that trend: Washington, Arkansas, Maryland and Pennsylvania. All told, lenders repossessed 43,597 homes last month, the lowest level since September 2007.

At the current monthly pace, completed foreclosures will total roughly 550,000 this year, down from 671,000 last year, RealtyTrac said.

An uptick in homes that entered the foreclosure process last month, however, may end up pushing that total to 600,000, said Daren Blomquist, a vice president at RealtyTrac.

Treasury sold $621 million in GM stock last month

DETROIT – The government has sold another piece of its stake in General Motors Co.

The Treasury Department said in its March report to Congress that it sold $621 million worth of GM common stock last month.

The report dated Wednesday said the government has recovered about $30.4 billion of the $49.5 billion bailout it gave the Detroit automaker. That means taxpayers are still $19.1 billion in the hole. The Treasury said the price per share will be revealed at a later date.

GM stock sold in a range of $26.75 to $29.30 in March. At the midpoint of $28, the government would have sold roughly 22.2 million shares. That would leave it with about 255 million shares. Those would have to sell for around $75 each for the government to break even, more than double the current trading price.

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