Business & Finance
Toyota Motor Corp. is in talks with an unidentified "financial" sponsor about acquiring a one-third stake in troubled Misawa Homes Holdings Inc., Japan's third largest builder, Bloomberg.com reported Tuesday. Although largely known as an automaker, Toyota has had a housing unit for 30 years that accounts for less than 10 percent of its annual sales. The Toyota Housing Corp., which ranks eighth nationally in unit housing sales, makes prefabricated homes. Toyota's possible involvement would be part of a plan by a state-run turnaround agency to help save Misawa.
The Industrial Revitalization Corp. of Japan, which facilitates corporate restructuring efforts, announced Tuesday a plan to try to save Daiei Inc., formerly Japan's biggest retailer, with $6.9 billion in aid, including debt waivers, Bloomberg.com reported. Daiei, which has fallen to No. 3 among national retailers, is seeking its third bailout in three years. The company operates 63 supermarkets and 182 general merchandise stores in Japan. The brunt of the bailout strategy will be borne by UFJ Holdings Inc., Daiei's biggest lender, according to The Financial Times.
Fannie Mae's recently ousted CEO will receive $114,000 a month for life as part of a "retirement" package, according to documents filed Monday with the Securities and Exchange Commission. Franklin Raines was forced out of his position Dec. 21 by Fannie Mae's board of directors after the SEC said the company must make accounting corrections that could erase $9 billion of past profit dating to 2001. Federal officials have asked the embroiled mortgage lending giant to withhold any compensation until they investigate the package, and decide whether it was appropriate for Raines to receive retirement benefits after being forced to step down.