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Consumers borrowed less for a record eighth straight month in September amid rising unemployment and tight credit conditions. Economists worry the declines in borrowing will be a drag on the fledgling recovery.
The Federal Reserve said Friday that borrowing fell at an annual rate of $14.8 billion in September, the biggest decline since July and larger than the $10 billion drop economists expected.
Americans are borrowing less as they try to repair cracked nest eggs and replenish rainy day funds in a dismal jobs market. Many are finding it hard to get credit as banks, hit by the worst financial crisis in decades, have tightened lending standards.
Borrowing by consumers for revolving credit, including credit cards, fell at an annual rate of 13.3 percent in September, the same as August. This category has declined for a record 12 straight months.
Borrowing for non-revolving loans dropped at an annual rate of 3.7 percent in September.
AT&T announced Friday it has completed its $2.8 billion acquisition of Centennial Communications Corp., the parent company of Fort Wayne-based Centennial Wireless.
An AT&T spokeswoman was unsure Friday what the effect will be on Centennial Wireless’ local call center and Fort Wayne operations headquarters.
“We haven’t made any decisions regarding employment yet,” Jackie Janus said. “We’re going to work very had to find a home for as many people as possible.”
Janus was unable to provide a Centennial employee count for Fort Wayne. “It’s still business as usual,” she said.
Lincoln National Corp. has announced a quarterly dividend of 1 cent per common share and 75 cents per preferred share series A.
The dividend on common stock will be payable on Feb. 1 to shareholders of record at the close of business on Jan. 11. The dividend on Lincoln’s $3 Cumulative Convertible Preferred Stock Series A will be payable on March 5 to shareholders of record at the close of business on Feb. 12.
The Philadelphia-based company will also pay $11.9 million in dividends on the Fixed Rate Cumulative Perpetual Preferred Stock Series B on Nov. 16.
Carl-Peter Forster, the chief executive of General Motors Europe who runs its struggling Opel unit, will leave the company, GM said Friday.
GM said in a statement that Forster, 55, would advise the company on picking a new Opel CEO. The statement gave no time frame for his departure.
Forster will be replaced temporarily by Nick Reilly, now president of GM’s international operations and who once ran Opel’s Vauxhall operations in the United Kingdom, said a person briefed on the executive moves.
Freddie Mac’s losses narrowed to $6.3 billion in the third quarter, but the government-controlled mortgage finance company didn’t need a federal cash infusion.
The McLean, Va.-based company has received about $51 billion since it was seized by federal regulators in September 2008, but said it didn’t need any more money for the second straight quarter.
