Business news in brief

Posted: August 12, 2012


Temple Health names leader

Temple University Health System named John N. Kastanis president and chief executive of Temple University Hospital. He had served in that role on an interim basis since December. In addition to Temple University Hospital, Kastanis will be in charge of Temple's Episcopal and Northeastern campuses, Temple's bone marrow transplant program at Jeanes Hospital, and the Temple Transport Team, the health system said. - Harold Brubaker

Forecasters lower outlook

U.S. forecasters have cut their outlook for growth and see weaker labor market conditions, the Federal Reserve Bank of Philadelphia said in its Third Quarter Survey of Professional Forecasters. The forecasters expect gross domestic product to increase at an annual rate of 1.6 percent this quarter, down from the previous estimate of 2.5 percent, the regional Fed bank said in a statement. The forecasters see GDP of 2.2 percent in 2012, down from 2.3 percent. The unemployment rate is projected to be 8.2 percent in 2012, before falling to 7.9 percent in 2013, 7.3 percent in 2014, and 7.0 percent in 2015, the Philadelphia Fed said. - Bloomberg News


$130M OKd to pay creditors

The trustee liquidating MF Global Inc. won court approval to receive $130 million from CME Group Inc. to pay back the bankrupt brokerage's customers and other creditors. U.S. Bankruptcy Judge Martin Glenn said in court papers filed in Manhattan bankruptcy court that the agreement can go forward, overruling an objection from one customer. Glenn had heard arguments in court on Aug. 8, including those from the Commodities Future Trading Commission and Securities Investor Protection Corp. in support of the pact. Trustee James Giddens has set in motion distributions that will repay commodity customers about 80 percent of what they are owed for funds missing from their segregated accounts. He has estimated that there is a gap of $1.6 billion between the money available to pay them and what they are owed. - Bloomberg News

Big quarterly loss for retailer

J.C. Penney Co. reported a bigger-than-expected loss and plummeting sales during the second quarter, as its customers remain confused by the new pricing strategy that ditched hundreds of sales in favor of everyday lower prices. The retailer said it lost $147 million, or 67 cents per share, in the quarter ended July 28. That compares with net income of $14 million, or 7 cents per share, a year ago. Revenue tumbled almost 23 percent to $3.02 billion. - AP

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