FEDERAL FRAUD ENFORCEMENT DOUBLES
The Consumer Financial Protection Bureau roughly doubled the number of enforcement cases it brought last year as the federal watchdog intensified its scrutiny of industries, including credit cards, auto lending and debt collection.
CFPB officials said that in 2015 the bureau handled 59 cases in which companies settled allegations of wrongdoing and 11 cases that led to lawsuits. That compares with 23 settlements and 11 lawsuits for 2014, and 21 settlements and seven lawsuits in 2013.
The sharp increase reflects the growth in the number of investigators, examiners and administrative staffers, as well as maturing of the bureau’s practices and policies four years after it was established under the DoddFrank financial overhaul law.
Denver company forfeits N.D. oil. Regulators ordered
a Denver company to forfeit crude oil that was obtained from an area where it did not hold a lease. The North Dakota Industrial Commission on Monday ordered Gadeco LLC to forfeit the 800 barrels of oil. Proceeds from the sale of the oil will go into the state’s general fund. State Mineral Resources director Lynn Helms says the company drilled in error. The company spent more than $8 million drilling the well, which is now plugged.
United warns of passenger yield slide. United
Continental Holdings Inc. is projecting a larger decline in a key passengerrevenue metric, citing, among other things, travel cuts from oil-patch corporate customers. Yield is the average price a person pays to fly one mile, excluding taxes and fees.
On Monday, the carrier said unit revenue, or how much it makes for each passenger flown a mile, would decline 4.4 to 4.5 percent for the year ended Dec. 31, compared with its previous view of a 3.9 to 4.4 percent decline. Traffic, however, rose 1.5 percent for the year, bolstered by a 3.1 percent increase in the fourth quarter.
$300 million bid for American Apparel in.
An investor group wants to buy American Apparel for about $300 million and bring back the clothing chain’s founder and former CEO, Dov Charney. Hagan Capital Group and Silver Creek Capital Partners say Charney has a business plan that would improve American Apparel. The Los Angeles company filed for Chapter 11 bankruptcy protection in October.
Shire sweetens Baxalta offer. Irish drugmaker
Shire PLC’s second attempt to buy Baxalta looks more likely to succeed, with Baxalta’s board backing the sweetened offer of $32 billion in cash and stock. If the deal goes through, the combined company would be one of the world’s top 20 drugmakers by revenue and a leader in the niche of raredisease medicines.
Treatments for diseases affecting fewer than 200,000 Americans are a lucrative research area, with drugmakers testing hundreds in clinical trials. The surge is driven by a combination of tax breaks, the lure of ultra-high drug prices, scientific advances such as the mapping of the human genome and advocacy groups for patients raising money to entice small drug developers to research treatments for their condition.