Economy
JP Morgan Settles with Jefferson County
JP Morgan is paying more than 700 million dollars to settle charges by the Securities and Exchange Commission it made unlawful payments to friends of Jefferson County commissioners in order to win municipal bond business.
Wadley Waits
It's hard to find a one company town any more. But in rural east Alabama, there is a town where three-quarters of residents work at the same manufacturing plant. Or at least they did, until the plant closed down. WBHM's Tanya Ott reports.
Businesses’ Take on the Birmingham Business Alliance
Local business owners are closely watching what direction economic development takes since the formation of the Birmingham Business Alliance. The merger between the Birmingham Regional Chamber of Commerce and the Metropolitan Development Board took place a few weeks ago. The Alliance covers a large swath of central Alabama, including Jefferson, Shelby and five neighboring counties. The union sounds great on paper, but what does it really mean for local businesses? WBHM's Varun Krishnan reports.
Birmingham Business Alliance
Birmingham business and political leaders are hoping a new economic development organization will kick start growth in the region. The Birmingham Business Alliance made its public debut Tuesday. The organization is a merger of the Birmingham Chamber of Commerce and the Metropolitan Development Board and aims to foster economic development in the seven county, metro-Birmingham area. WBHM's Andrew Yeager spoke with Dalton Smith, President and CEO of the Birmingham Business Alliance. Smith says this new group will help focus economic development efforts.
Scrushy Ordered to Pay $2.9 Billion
A judge has ordered former HealthSouth C.E.O. Richard Scrushy to pay almost $2.9 billion for his role in the massive account fraud which nearly sunk the company. Shareholders sued Scrushy in civil court alleging he faked profits which triggered bonuses for him. Scrushy testified he knew nothing of the fraud and other executives in the company were responsible. Plaintiff lawyer John Haley led the legal team seeking damages from Scrushy. He spoke with WBHM's Bradley George.
What Does Six Flags Bankruptcy Mean for Alabama Adventure?
Six Flags, the largest regional theme park operator in the world, filed for chapter eleven bankruptcy protection over the weekend. With a tough economy and competition from other family friendly entertainment options, the theme park industry is having to find creative ways to attract business.
New Economic Incentive Law
This week, Governor Bob Riley signed legislation that makes more types of businesses eligible for state financial help if they locate here. In the past, Alabama's economic incentive laws only covered manufacturing jobs. The new bill expands that to corporate headquarters, research and development centers, and alternative energy companies.
Scrushy Trial Update
Former HealthSouth CEO Richard Scrushy was back on the witness stand Thursday for a second day of testimony in a lawsuit over a long-running fraud at the company. WBHM's Andrew Yeager spoke with WBHM's Bradley George about Scrushy's testimony.
Brunos Fallout: the Glenwood Pecans
The poor economy has dealt a serious blow to some Alabama nonprofit organizations. One group that serves children with autism and severe emotional disabilities is feeling the pain even more, thanks to the bankruptcy of Brunos supermarket.
US Steel: Fairfield Fallout
German steel giant ThyssenKrupp announced Tuesday it may delay opening its massive steel plant under construction near Mobile. The $4.5 billion plant is currently scheduled to open for next spring. But ThyssenKrupp says its hemorrhaging money - more than one billion dollars this year - so the plant may have to wait. This comes after U.S. Steel announced it would indefinitely idle steelmaking operations at its plant in Fairfield, putting 1,700 jobs in limbo. WBHM's Andrew Yeager attended a town hall meeting Tuesday and spoke to a number of workers who are anxious and confused, but optimism as well.
Wilcox County Unemployment
When the economy turned sour, people started making comparisons to the Great Depression. But experts quickly noted it wasn't anything like the 1930's, when unemployment soared to 25%. But for one Alabama community, unemployment is that high. WBHM's Tanya Ott takes us to Wilcox County, where one in four people who want to work can't find a job.
RealtySouth Lawsuit
Alabama real estate professionals are scrambling this week, after a major court ruling against Birmingham-based RealtySouth. As WBHM's Tanya Ott reports, the lawsuit could affect 30,000 Alabamians and cost the company tens of millions of dollars.
Grocery Auction
Need another sign of the times? Head on down to Calera to the Cadle Auction House, where you might find more toilet paper and laundry soap than Waterford crystal and speed boats. WBHM's Tanya Ott reports.
The Economy & Nonprofits: A Conversation with Tim Delaney
Nonprofit organizations ranging from health care groups to after-school programs are hurting right now. Corporate and individual donations are down. Foundations are tightening their belts, and state and local governments are taking drastic cost cutting measures as well. All of this adds up to the very real possibility that thousands of nonprofit organizations may have to shut down.
Making Do: Vanishing Pages
So you're tired of all the grim economic news. You want to relax, sit on the couch and flip through a good magazine. Only trouble is that favorite magazine may not be there any more. Magazines across the country have folded in recent months, including titles in Birmingham. As we conclude our series "Making Do: Alabama's Economy," WBHM's Andrew Yeager takes a look at an industry not just reeling from the recession, but dealing with a change in the medium itself.
Making Do: The McCoys’ Housing Dilemma
The economy continues to weaken and Moody's credit rating company reports nearly 10 million homeowners are having trouble making their mortgage payments. People who track the housing industry say another wave of foreclosures is on its way. All the while, some homeowners are treading water, trying to stay afloat. WBHM's Tanya Ott has one Hoover family's story.
On The Line: Making Do
The economy continues to dominates news headlines. Ten million homeowners are having trouble making their mortgage payments. People who track the housing industry say another wave of foreclosures is on its way. Alabama's bankruptcy rate is among the highest in the country. Gas prices have stabilized, but high food prices continue to strain family budgets. Tonight at 6:30 on WBHM we discuss all this and more during On The Line: Making Do .
Regions: Managing the Message
A recent headline in Newsweek magazine pretty much says it all when it comes to the current financial crisis - "No One Wants to Hug a Banker." Critics of Birmingham-based Regions Bank got two pieces of ammunition last week. The company announced executive compensation for 2008 and while CEO Dowd Ritter turned down a $1.1 million bonus, his total compensation still rose more than $2 million. Two days later, Regions announced it was suspending matching contributions for its employees' 401(k)s. Not exactly positive news in today's economic climate. WBHM's Andrew Yeager reports.
Magic City Marketplace
The Birmingham marketplace is connected by people who have to grapple with numbers and projections and spin. We try and slice through the psychobabble that can be business news with our occasional segment featuring the editor of the Birmingham Business Journal.
Birmingham Economic Summit
Unemployment is up, housing values are down, and the economy likely may be in recession. It's quite a backdrop for the Birmingham Economic Summit - a three-day event beginning Tuesday. Birmingham City Councilman Steven Hoyt and summit planner Michael Bell sat down with WBHM's Tanya Ott to talk about the challenges facing the local economy.
Stock Market Perspective
If there's a singular image of the American economy in action, it's perhaps the frenzied floor of the New York Stock Exchange. The opening bell rings, traders shout and stock prices rise and fall. It's familiar territory for William Johnston. Johnston is the former head of the exchange. He spoke at Samford University Thursday. As Johnston finished his tenure at the exchange in late 2001, the financial world was rocked by accounting scandals at Enron and Worldcom. WBHM's Andrew Yeager asked if there are any similarities between that market turmoil and what we're seeing today.
HealthSouth CEO Advises on Tough Economy
There's been a lot of bad economic news lately, with turmoil in the banking and housing sectors and wild fluctuations on Wall Street. HealthSouth President and CEO Jay Grinney says his company's "near death experience" holds lessons for other businesses in the current economy.
Alabama Economy: Homeless
A sputtering economy, skyrocketing food and gas prices and the mortgage mess are forcing more Alabama families from their homes. More than 800 houses in Alabama are in some state of foreclosure. That's a big jump from last year. Most displaced homeowners find somewhere else to live, but some end up homeless. And as Les Lovoy reports, Birmingham's homeless shelters are struggling to keep up with demand.
Alabama Economy: Downtown Housing
Real estate isn't what it used to be. Home values are dropping. Mortgages are harder to get. And more people are foreclosing. The massive slowdown has hit all sectors of the economy and all places of American life. One area that had been on an upswing is downtown Birmingham, which once boasted a booming condo and loft business. Today, it's getting harder to sell those units, as WBHM's Steve Chiotakis reports as part of our series The Alabama Economy.
Alabama Economy: Regions Bank
This September is a month economists will remember like it or not. Fannie Mae, Freddie Mac, Lehman Brothers, Washington Mutual, Wachovia - it seems financial giant after giant just kept falling. Then yesterday, Birmingham-based Regions' stock plunged more than 40%. So what does this mean for our corner of the banking system? As we continue our series on the Alabama Economy, WBHM's Andrew Yeager looks at how Regions Bank is weathering the storm.
On The Line: The Alabama Economy
The economy again dominates news headlines this week. Nationally, Congress will vote on a massive bailout plan, and locally the Jefferson County Commission grapples with missing another bond payment deadline and filing for possible bankruptcy. The strain trickles down to a very personal level with high gas and food prices hitting everyone in the wallet and the mortgage meltdown leaving some people homeless. Tonight at 6:30 on WBHM we discuss all this and more during On The Line: The Alabama Economy.
Wilcox County’s Pain at the Pump
We're all feeling the pinch from gas hovering around $4 a gallon these days, but in Alabama's poorest counties the situation is getting dire. The latest nationwide Pain at the Pump Index' finds that just south of Selma, in Wilcox County, residents are spending nearly 16% of their monthly income on fuel. That's the highest percent in the country. We sent WBHM's Tanya Ott down to find out why.
Banking Woes
It's been a sour housing market of late with rising mortgage defaults and consumer debt. And big banks have been feeling the hurt too. Birmingham's Regions Financial reported second quarter profits are down by more than 50% and cut their dividends by an even higher percentage. Charlotte, N.C.-based Wachovia had losses approaching $9 billion and is cutting more than 6,300 jobs nationwide, including some jobs in Alabama.
Volkswagen Goes to Tennessee
Alabama economic develop officials are understandably glum after news Volkswagen is driving past Alabama as a location for its new U.S. assembly plant. A site in Limestone County had been in the running. But the German automaker announced Tuesday Chattanooga, Tennessee, will get the $1 billion plant and the estimated 2,000 jobs that come with it. It's a rare miss for the state which already has investment from foreign car manufacturers Mercedes-Benz, Hyundai, Toyota and Honda. WBHM's Andrew Yeager spoke with Neil Wade, the head of Alabama's Development Office, to gauge his reaction to the announcement.
Realty Check
Playing the numbers game is common when buying or selling a home - but there's one number that can't be avoided when looking at the real estate market.
Alabama Adventure sold
The theme park Alabama Adventure has been sold. Southland Entertainment, which bought the park five years ago for a fraction of what it cost to build, sold the acreage that includes the park, but not adjoining property that it hopes to develop.
Construction Merger
Construction giant KBR, formerly known as Kellogg Brown and Root, announced today plans to buy Birmingham-based BE&K. The $550 million dollar deal would match the largest contractor for the US Army with one of Birmingham's largest companies. This announcement is just one of recent mergers to affect the Birmingham area. WBHM's Colin Quarello spoke with Professor Larry Harper from Samford University about what the deal means for Birmingham.
