Washington – Federal Reserve Chairman Ben Bernanke urged Congress Tuesday to bolster regulation of mortgage giants Fannie Mae and Freddie Mac, and suggested limiting their massive holdings to guard against any danger their debt poses to the overall economy.
Bernanke has previously supported efforts to pare the two mortgage companies’ huge portfolios. This time, however, he was a bit more specific and recommended that their holdings might be linked to a “measurable public purpose, such as the promotion of affordable housing.” The Fed chief’s suggestion was contained in remarks delivered via satellite to a bankers meeting in Hawaii.
His remarks come as worries about risky mortgages are making investors jittery. Those fears contributed to last week’s worldwide stock meltdown, where the Dow Jones industrials suffered a 416-point plunge. Wall Street on Tuesday staged a rebound, gaining more than 150 points.
DENVER
55% in Denver cite financial security
About 55 percent of Denver residents rate their financial security as excellent or good, slightly better than the national average of 50 percent, according to a report released Tuesday by Country Insurance & Financial Services.
Overall, Denver residents had a score of 72.4, slightly higher than the national reading of 70.2. The index is on a scale of zero to 100, with 100 indicating the highest level of financial security.
The report found that one in five Denver residents is not confident he or she will be able to pay debts as they come due, a number in line with the national average.
DENVER
Noridian stops paying for drug Aranesp
Noridian Administrative Services LLC, a company that administers Medicare plans in Colorado, has decided to stop paying for a drug produced by Amgen’s Longmont manufacturing facility.
Noridian will no longer pay for the drug Aranesp in its use against anemia of cancer, or anemia caused by cancer.
Amgen spokesman David Polk said it is “premature to determine” if the move by Noridian would affect operations at the Longmont facility.
Aranesp’s use in anemia of cancer isn’t approved by the Food and Drug Administration, but insurers have typically covered this so-called off-label use if prescribing doctors deem it appropriate. Noridian’s decision follows mounting concerns about Aranesp’s safety in patients.
DENVER
DIA is 5th-busiest U.S. airport in 2006
Denver International Airport announced Tuesday that it ended 2006 as the fifth-busiest airport in the U.S. and the 10th-busiest in the world, according to an analysis of passenger traffic.
DIA also posted one of the largest passenger traffic increases of any of those airports, with a record 47.3 million passengers passing through in 2006, up 9.1 percent over the previous year. Only Beijing and Jakarta, Indonesia, reported larger increases, according to DIA.
DIA concluded 2005 as the sixth-busiest airport in the country and 11th in the world.
BOULDER
Market Force gets a financing boost
Boulder-based Market Force Information Inc. on Tuesday said that it closed a $32 million round of Series B equity financing led by new investor Monitor Clipper Partners.
The company said the new financing will allow it to pursue strategic acquisitions and develop new products. Market Force Information provides retailers with information about customers’ in-store experience.
DENVER
ProLogis ranked No. 1 in real-estate industry
Denver-based ProLogis ranks No. 1 in the real-estate industry on Fortune’s 2007 list of America’s Most Admired Companies.
ProLogis ranked first in six of eight performance categories: innovation, people management, use of corporate assets, quality of management, financial soundness and long-term investment.
Other Colorado companies on the list include Ball, which ranks fourth in its industry, and CH2M Hill, which ranks third.
DENVER
Rancher Energy files for stock offering
Denver-based Rancher Energy Corp. filed a preliminary prospectus Monday for sale of stock and warrants valued at a maximum of $242 million.
The offering includes 73.3 million shares of common stock and 73.5 million warrants for purchase of common stock. Both have a proposed offering price of $1.65 per share.
Rancher Energy has acquired but not yet developed oil and gas properties in Wyoming’s Powder River Basin.
DENVER
Frontier receives first 2 Republic jets
Frontier Airlines announced it has taken delivery of the first two regional jets from Indianapolis-based Republic Airlines.
Denver-based Frontier announced in January that Republic would replace Horizon Air as its regional jet carrier.
Republic will eventually operate 17 76-seat Embraer 170 aircraft for Frontier with service to Indianapolis, Omaha, Albuquerque and El Paso.
Frontier also announced that its planes were 70.8 percent full during February, down 2 points from February 2006.
TOPEKA, Kan.
Payless to buy local brand developer
Payless ShoeSource Inc., the largest U.S. shoe retailer by store count, agreed to buy Englewood brand developer Collective International LP for $91 million. Collective develops and licenses skateboard and snowboard brands.
DENVER
Rentech to supply clean-fuels project
Denver-based Rentech Inc. announced Tuesday that it has signed a contract with Peabody Energy to supply coal to Rentech Energy Midwest Corp.’s ultra-clean fuels conversion project in East Dubuque, Ill.
The terms call for Peabody to provide up to 7.2 million tons of coal from August 2009 to December 2017.
MINNEAPOLIS
Star Tribune hires publisher of rival
The Star Tribune hired the publisher away from the St. Paul Pioneer Press on the same day the Minneapolis paper’s sale to Avista Capital Partners closed.
Par Ridder started his new job as publisher and chief executive of the Star Tribune immediately, the newspaper said Monday.
William Dean Singleton, chief executive of Denver-based Media News Group Inc., which controls the Pioneer Press, said he was “surprised and disappointed” by Ridder’s departure. “Within reason, we wish (Par) well,” Singleton said. Media News Group owns The Denver Post.
