Huge container ship visits U.S.
The largest container ship ever to reach the United States has docked in Virginia.
The French-owned CMA CGM Theodore Roosevelt arrived in Norfolk on Monday from Asia after setting another record as the largest ship ever to traverse the newly expanded Panama Canal.
At 1,200 feet, the vessel is longer than the new USS Gerald R. Ford aircraft carrier, and can carry the equivalent of 14,400 20-foot-long cargo containers. That’s nearly 10 percent more than the COSCO Development, a huge ship that broke the previous record in May.
The Port of Virginia is one of only four East Coast ports with the 50 feet of depth at low tide desired for these massive ships. More are seeking funds to deepen their channels.
Wells Fargo faces new lawsuit
Wells Fargo & Co. is facing another consumer class-action lawsuit, this time alleging that it bilked home loan borrowers by charging them extra fees when their applications were delayed — even when it was the bank’s fault.
The new suit, filed Monday in San Francisco federal court, is the latest development in a growing new controversy over the practices of the bank’s home loan unit and one of several new problems that have emerged at Wells Fargo over the past year in the wake of the bank’s sham-accounts scandal.
The mortgage fee matter is already the subject of a whistle-blower’s wrongful termination lawsuit and a probe by the Consumer Financial Protection Bureau. It has also spurred an internal review, which appears to have led to a shake-up in Wells Fargo’s mortgage division.
Buffett’s bank shares climb
Warren Buffett’s company is now Bank of America’s largest shareholder.
Bank of America said Tuesday that Berkshire Hathaway had exercised its warrants to buy 700 million shares of the bank. Berkshire received the warrants in 2011 when Buffett invested $5 billion in the bank.
The shares, which are worth roughly $16.5 billion today, give Berkshire control of about 6.5 percent of the bank based in Charlotte, N.C.
Berkshire had been receiving $300 million a year in interest on its preferred shares. Buffett decided to trade that for common shares because Bank of America is now paying a dividend of 48 cents per share annually.
Buffett’s Omaha, Neb.-based conglomerate is also a major shareholder in Wells Fargo, American Express and Goldman Sachs.
Windfall for Apple CEO Cook
Apple CEO Tim Cook has collected $89.6 million as part of a 10-year deal that he signed as an incentive to keep the iPhone maker at the forefront of the technology industry after he took over the reins in 2011 from company co-founder Steve Jobs.
The windfall detailed in a Monday regulatory filing flowed from 560,000 Apple shares sold during the past week. Cook received half the award because Apple’s stock delivered shareholder returns in the top third of the Standard & Poor’s 500 index during the past three years. He got the other 280,000 shares for simply staying on the job.
Apple set aside more than 291,000 shares sold for $46.4 million to cover Cook’s tax bill.
VW recalls 281,000 vehicles
Volkswagen is recalling almost 281,000 CC and Passat sedans and wagons in the United States because the fuel pumps can fail and cause the cars to suddenly stall.
The recall covers the CC from the 2009 through 2016 model years, as well as the Passat sedan and wagon from 2006 through 2010. All have four-cylinder gasoline engines.
VW says in government documents that the fuel pump control computer can lose electrical power. That can stop gas from flowing and cause the engine to stop. That problem also can make the fuel pump continue running after the car is shut off.
VW will notify owners about the problem in October and send a second letter when replacement computers are available.
Compiled from staff and wire reports.
Business news briefs, Aug. 30: Huge container ship docks in U.S.