Business

September 27, 2008

In brief

Tesla creator will speak

Martin Eberhard, founder of electric car maker Tesla Motors, will deliver the Allan P. Kirby Lecture on Wednesday at Wilkes University. Named one of Fortune magazine’s top innovators in 2007, Eberhard had been an electrical engineer and entrepreneur in California’s Silicon Valley before launching Tesla Motors. The lecture, titled “Building a Culture of Innovation: From E-books to Electric Cars to …?” will begin at 7:30 p.m. in the Dorothy Dickson Darte Center for the Performing Arts, S. River and W. South streets, Wilkes-Barre.

There is no charge to attend. For information, call Rebecca Van Jura at 408-4306 or e-mail Rebecca.Vanjura@wilkes.edu

Growth estimate falls

The U.S. economy was not as strong in the second quarter as previously believed, held back by weaker spending by consumers and businesses alike, the Commerce Department reported Friday.

Gross domestic product grew at a 2.8 percent annualized pace in the quarter, revised down from the previous estimate of 3.3 percent, the government said in its third and final GDP estimate.

Economists surveyed by MarketWatch had been looking for GDP — broadly defined as the total value of all goods and services produced — to be revised up to 3.4 percent growth.

The economy had expanded at a 0.9 percent rate in the first quarter.

Wachovia said in sale talks

A report of a possible deal between Wachovia Corp. and Citigroup, Inc. surfaced late Friday after Wachovia shares lost a quarter of their value in regular trades on concerns the bank may take another big mortgage-related write down.

A sale to Citigroup would make Wachovia the latest victim of the ongoing credit crisis, with the bank succumbing to the triple threat of falling real estate prices, over aggressive lending and panic in the credit markets.

Discussions are in the early stages and there’s no certainty any merger will be hammered out, according to the New York Times.

Failed bank CEO profits

The CEO of failed Washington Mutual Inc., on the job only a few weeks before the nation’s largest thrift was seized by the government and sold to JPMorgan Chase & Co., is entitled to more than $13 million in severance and bonus pay.

Alan H. Fishman signed an agreement that provides around $6 million in cash severance and retention of his signing bonus of $7.5 million if he were to leave his job, according to a company filing with the Securities and Exchange Commission.

On Sept. 8, the same day WaMu announced Fishman’s appointment as chief executive, the bank signed an agreement with federal regulators to provide an updated business plan and forecast for its financial performance.

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