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THE BULLETIN • THURSDAY, JUNE 7, 2012
NASDAQ
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IN BRIEF Mt. Bachelor gets $1.2M permit Deschutes County has issued Mt. Bachelor ski area a building permit valued at $1.2 million for a two-story, 8,670-square-foot building. Dave Rathbun, Mt. Bachelor’s president and general manager, said Wednesday that the building would temporarily house employee locker rooms and eventually become the administration building.
Nasdaq tries to make amends The Nasdaq stock exchange tried to make amends with investors ensnared by technical problems on the day Facebook went public. But the apology was not universally accepted. Nasdaq said Wednesday that it would hand out $40 million in cash and credit to reimburse investment firms that lost money on Facebook’s opening day because of computer glitches at the exchange. Nasdaq’s chief rival, the New York Stock Exchange, fired off a statement condemning the move, saying Nasdaq was giving itself an unfair advantage and rewarding itself for its own mistakes. One broker, Knight Capital, said the planned reimbursements weren’t nearly enough, encapsulating the complaints that other brokers and investment firms were making privately. Facebook went public May 18 amid great fanfare, but computer glitches at the Nasdaq threw the day into chaos.
Dow soars on stimulus hopes
DOW JONES
CLOSE 12,414.79 CHANGE +286.84 +2.37%
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S&P 500
CLOSE 1,315.13 CHANGE +29.63 +2.30%
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10-year Treasury
CLOSE 1.66 CHANGE +5.06%
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$1,632.80 s SILVER GOLD CLOSE CHANGE +$17.60
• They’re also conducting a broader inquiry into the firm’s $2B loss By Jim Puzzanghera Los Angeles Times
WASHINGTON — Federal banking regulators have been meeting daily with JPMorgan Chase & Co. executives to reduce the risks in the trading portfolio that led to the loss of more than $2 billion and are conducting a broader inquiry into risk management at the nation’s largest bank. “We are not limiting our
inquiry to the particular transactions at issue. We are assessing the adequacy of risk management throughout the bank,” Thomas Curry, head of the Office of the Comptroller of the Currency, told the Senate Banking Committee on Wednesday. “If corrective action is warranted, we will pursue appropriate informal or formal remedial measures.” Among those measures
could be forcing bank executives to return some of their compensation, a process known as clawback, Curry said. The OCC is the chief regulator of JPMorgan’s banking activities and has 65 examiners in the bank’s offices. In response to questioning from senators, Curry said the agency was reviewing whether the agency should have caught
The Associated Press file photo
the risky trades before they resulted in such huge losses. “We are looking at whether there were gaps in our assessment or risk controls,” Curry said. Although JPMorgan’s London-based chief investment office created the complex trading portfolio in 2007, the OCC did not begin focusing on the potential problems until April — just weeks before Chief Executive Jamie Dimon announced the huge losses. See JPMorgan / E3
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Ryan Brennecke / The Bulletin
Tenants are being sought for this new east-side retail development, called 2500 Twin Knolls. It has more than 12,000 square feet of space, and the monthly rent — 75 cents to $1.10 per square foot — is rock bottom for a brand-new building, according to Greg Jacobs, principal broker at Colm Commercial Real Estate.
Open for business on Bend’s east side
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DETROIT — At 118 miles per gallon, the Honda Fit electric vehicle is the most fuelefficient in the United States. But getting that mileage isn’t cheap — and it isn’t always good for the environment. Honda announced the eyepopping figure Wednesday, making the small, four-door hatchback more efficient than electric rivals like the Ford Focus, Nissan Leaf and Mitsubishi i-MiEV. It goes on the market this summer in Oregon and California. The electric Fit has an estimated price tag nearly twice as high as the gasoline-powered version. It would take 11 years before a driver makes up the difference and begins saving on fuel. With gas prices falling, the high sticker price for electric vehicles is becoming more of a barrier for American buyers, even though the vehicles are far more efficient than their gas-powered counterparts. That’s hurting sales of electrics. Through May, carmakers sold just over 10,000 electric vehicles, less than 0.2 percent of U.S. car and truck sales. That’s because the numbers don’t add up for the average consumer. See Honda / E3
PERSONAL FINANCE
• Developer hopes relatively low rent, build-to-suit option attracts tenants By Elon Glucklich The Bulletin
In commercial real estate, a developer’s pain can be a business owner’s gain. Take the brand-new office and retail complex on Bend’s east side, called 2500 Twin Knolls, for instance. Unveiled last month, the new building on Northeast Twin Knolls Drive features more than 12,000 square feet of space. The monthly rent — 75 cents to $1.10 per square foot, including real
estate taxes, insurance, repairs and other expenses — is rock bottom for a brand-new building, said Greg Jacobs, principal broker at Colm Commercial Real Estate, the group listing Twin Knolls, which is near U.S. Highway 20 and Purcell Boulevard. Rent there could have been higher — 20 to 25 percent more, Jacobs said. Its east-side location brings lower lease rates. So does being entangled in the commercial real estate crash. See Twin Knolls / E3
2500 Twin Knolls Pilot Butte State Park
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By Hugo Martin
LOS ANGELES — In the 1970s, disco-themed skating rinks were all the rage. In the ’80s it was paintball battlefields, followed in the ’90s by urban skateboard parks. And now comes the zip line — an elevated cable ride that zips harnessed riders downhill at high speeds, powered by gravity. Across the nation, these rides stretch over canyons,
vineyards, island tourist towns and even zoos. Since 2001, the number of zip lines built in the U.S. has soared from 10 to more than 200, according to zip line experts. “They are spreading like fast-food hamburger joints,” said Mike Teske, technical director for a Maui-based zip line company who also heads a panel drafting national safety standards for zip lines. See Zip lines / E4
New rules aim to help make (401)k fees clearer By Eve Mitchell Contra Costa Times
Andy Zeigert / The Bulletin
Across the nation, zip lines’ popularity is soaring Los Angeles Times
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Honda Fit gets 118 mpg, but costs add up The Associated Press
Interest rates
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The all-electric 2013 Honda Fit EV is seen during its debut at the Los Angeles Auto Show on Nov. 16, 2011.
By Tom Krisher and Jonathan Fahey
— Staff and wire reports
The European Central Bank, which sets rates for the 16 euro nations, left its key rate unchanged.
CLOSE $29.476 CHANGE +$1.086
Bank regulators working to reduce risk at JPMorgan
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Stocks on Wall Street surged Wednesday as remarks from a Federal Reserve official stirred stimulus hopes and after stocks in Europe rose when the European Central Bank appeared to keep the door open to making a future cut to its benchmark interest rate. Dennis Lockhart, president of the Atlanta Federal Reserve, said Wednesday that if needed to help growth, “further monetary actions to support the recovery will certainly need to be considered.” The gains in equities gave two of the main market gauges their best daily performance in 2012 and propelled the Dow Jones industrial average back into positive territory for the year. The Dow closed up 286.84 points, or 2.37 percent, at 12,414.79, giving it a 1.6 percent gain so far this year. The Standard & Poor’s 500-stock index gained 29.63 points, or 2.30 percent, to 1,315.13.
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Brent Ng takes off from Hogsback Ridge on the Catalina Zipline Eco-Tour in Avalon, Calif. Zip lines have become a boom industry. Bob Chamberlin Los Angeles Times
WALNUT CREEK, Calif. — Millions of employees put money in 401(k) plans to build a retirement nest egg. But most don’t know that the plans they invest in charge fees that can make that nest egg smaller. Starting this summer, new federal rules will make it easier for employees to get a handle on these fees, which are subtracted from an account’s value. Information about fees is already provided by some plan providers, but not all. Some make the information available on websites and others include it on quarterly statements, according to Catherine Collinson, president of the Los Angelesbased Transamerica Center for Retirement Studies. The new rules will bring consistency to the disclosure process while making it easier for consumers to understand the fees they are paying, she said. See 401(k) / E3