DAILY DIGEST
Judge sides with Red Cross in trademark dispute case
A decision by Johnson & Johnson, the giant health-care conglomerate, to sue the American Red Cross last year for commercializing the Red Cross symbol may be turning into a bit of a disaster for the company.
This week the company lost the second round in its trademark dispute against the disaster relief agency when U.S. District Judge Jed Rakoff in Manhattan threw out most of the case.
In a decision late Wednesday, Rakoff said the congressional charter for the Red Cross gave it the right to use the symbol - a Greek red cross on a white background - even for business purposes.
The company and the Red Cross had amicably shared use of the symbol for more than a century through an agreement signed in 1895. But the Red Cross angered Johnson & Johnson beginning in 2004 by licensing the symbol to other companies for use on commercial items sold in stores as part of the organization’s fundraising.
In August, the company took the dispute to court. But in his second ruling dismissing part of the case - the first one was in November - Rakoff said that charitable reasons for Red Cross’ business ventures make them all the more reasonable.
New York Times Mortgage rates edge down again
Rates on 30-year mortgages edged down this week to their lowest point in a month, a spot of welcome news to would-be home buyers.
Freddie Mac, the mortgage company, reported Thursday that 30-year fixed-rate mortgages averaged 6.01 percent for the week. That was down from last week’s 6.05 percent and was the lowest since mid-April, when rates averaged 5.88 percent.
Other rates also fell. Five-year adjustable-rate mortgages fell to 5.57 percent, from 5.67 percent last week. One-year ARMs fell to 5.18 percent, from 5.29 percent.
However, rates on 15-year fixed-rate mortgages held steady at 5.6 percent.
Associated Press Bernanke says banks must prepare better
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Commercial banks and other financial institutions need to beef up their ability to detect and protect themselves against risks like the credit and mortgage debacles, Federal Reserve Chairman Ben Bernanke said Thursday.
The three crises - housing, credit and financial - have exposed weaknesses in financial firms’ risk-management practices. Banks and other financial players have racked up multibillion-dollar losses when investments in complex mortgage-backed securities soured with the collapse of the housing market. Credit problems in housing quickly spread to other areas, intensifying the turmoil.
Banks need to better identify and measure risk, value their assets and liabilities, and prepare for liquidity disruptions, when access to cash or the ability to smoothly buy and sell can be impaired, Bernanke said in a speech to a Federal Reserve banking conference in Chicago.
Regulators also need to bolster their oversight, Bernanke said.
“It is clear that supervisors must redouble their efforts to help organizations improve their risk-management practices,” he said. “We have focused on the institutions in most need of improvement, but we will continue to remind the stronger institutions of the need to remain vigilant, particularly in light of the ongoing fragility of market conditions.”
Associated Press Drinkers like light (on the wallet) beer
Cash-strapped drinkers are starting to trade down to economy beers, the chief executive of Miller Brewing Co. said Thursday.
The Milwaukee brewer saw some shift between higher-priced, premium beers and economy beers such as Miller High Life and Milwaukee’s Best starting in January, Tom Long said.
“We think it’s primarily driven by decline of disposable income and pocket money that American consumers are feeling right now,” he said.
Long said the volume of beers sold remains stable, but the company expects to sell more lower-priced beers this year if gas prices continue to rise.
Associated Press