The Regional Report / Wells Fargo no longer consolidating student loans

Wells Fargo & Co. said Monday that it no longer will accept applications to consolidate student loans and has suspended participation in that federal program. Consolidation loans enable students with several types of federal loans to refinance with a single lender and make one monthly payment. Existing Wells Fargo consolidation loan borrowers and borrowers who completed an application before May 15 aren't affected, the company said. To date, 83 lenders have exited one or more federal loan programs, including nine of the top 10 consolidators, said Mark Kantrowitz, publisher of FinAid.org. San Francisco-based Wells Fargo is the largest bank in Minnesota by deposit market share.

ResCap extends bond-tender deadline
Residential Capital LLC, the distressed mortgage-finance company, said it has enough support from bondholders to proceed with its offer to exchange or buy back $14 billion of debt in an attempt to stave off bankruptcy.

Bloomington-based ResCap, owned by GMAC LLC, received the "requisite consents" from holders to move ahead with the plan, the company said Sunday. ResCap is offering investors as little as 80 cents on the dollar to extend maturities and reduce debt.

ResCap also extended the early deadline for the offer until Wednesday. The tender expires June 3. The exchange is contingent on the company getting a new $3.5 billion credit line from GMAC.

Best Buy venture may get U.K. review
The joint venture Best Buy Co. announced earlie

this month with London-based Carphone Warehouse Group PLC may be referred to the U.K.'s Competition Commission for investigation. The Richfield-based electronics retailer planned to open its first stores in Europe next year by investing 1.1 billion pounds ($2.15 billion) in Carphone. The U.K. Office of Fair Trading may refer the venture if the "creation of a relevant merger situation" takes place and it hurts competition in the country, the agency said Monday. Carphone Warehouse is Europe's largest handset retailer.
Piper fined for underwriting during ban
The Financial Industry Regulatory Authority fined Minneapolis-based Piper Jaffray Cos. $25,000 and ordered the company to disgorge profits of $260,158 for underwriting two municipal securities transactions in Minnesota during a two-year ban on its business with state issuers.

The ban stemmed from a $700 contribution made by Addison "Tad" Piper to Gov. Tim Pawlenty's 2006 re-election campaign, which violated the Municipal Securities Rulemaking Board's Rule G-37 on political contributions that states that municipal dealers and their professionals may only give $250 to any elected official that can influence bond business. "We take these matters seriously and are pleased to put it behind us," said Rob Litt, a spokesman for Piper Jaffray.

Briefly

Bloomington-based HealthPartners introduced a new health plan for individuals that offers a set of basic benefits, including three free visits per year, a $5 co-pay for generic drugs, 100 percent coverage for up to $200 preventive care annually and $250 co-pay for an emergency visit. Premiums start at $69 per month. ... VeraSun Energy will begin production at its ethanol plant in Hankinson, S.D., by the end of June. The Brookings, S.D., company became the second-largest ethanol producer when it acquired Inver Grove Heights-based US BioEnergy last month. ... Fridley-based Medtronic Inc. announced the U.S. launch of the Profile 3D Annuloplasty Ring used by heart surgeons to repair a failing mitral valve. ... Mocon Inc., Brooklyn Park, increased its quarterly dividend to 8.5 cents per share from 8 cents, payable Aug. 15 to shareholders of record Aug. 1. ... Great River Energy, Maple Grove, closed its issuance of $400 million in 30-year, first mortgage bonds. The new debt will be used to pay down the balance on its credit facility, capital projects and other general purposes. ... Law firm Stull, Stull & Brody said it has filed a lawsuit against Minneapolis-based RBC Wealth Management on behalf of purchasers of auction-rate securities.

— From staff and wire reports



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Regional Report / Wells Fargo no longer consolidating student loans
Pioneer Press

Article Last Updated: 05/19/2008 09:09:22 PM CDT

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