BUSINESS BRIEFS
Madoff case may cost IRS as much as $17B in taxes
Associated Press
NEW YORK — Even Uncle Sam may get burned by Bernard Madoff.
Investors who lost their fortunes in Madoff's alleged Ponzi scheme will end up paying far less in taxes and may even be eligible for refunds, according to accounting experts.
By some estimates, the Internal Revenue Service could be out as much as $17 billion in lost tax revenue.
"This is one more thing federal, state and local officials will have to deal with," said John Berrie, a tax partner at the law firm Bryan Cave in New York City.
"It's another heavy box on their back." Investors also may be counting on a federally mandated insurance fund to bail them out, but that program lacks the money to pay for all the claims that are likely to come.
LACK OF DEMAND LEAVES OIL LOWER
Oil continued its downward march yesterday as mass layoffs pushed the U.S. economy deeper into recession, signaling a drastic pullback on energy spending.Light, sweet crude for February delivery, fell $2.94 to settle at $41.67 barrel on the New York Mercantile Exchange. The January contract, which closes on today, fell 9 percent, or $3.84, to settle at $36.22 after dropping as low as $35.98, levels last seen in June 2004.
DISCOVER CARD RETURNS TO PROFIT
NEW YORK — Discover Financial Services said yesterday it returned to profitability in its fiscal fourth quarter, thanks to a legal settlement, but it is nevertheless trying to get funding from the government.Without the lawsuit settlement gain, the credit card lender would have had a loss due to rising defaults and delinquencies. Nearly all lenders are seeing more customers stop making their monthly payments as home prices tumble and unemployment surges.
FEDEX ANNOUNCES SALARY REDUCTIONS
NEW YORK — FedEx Corp. yesterday announced more broad cost cuts — including salary reductions — as deteriorating economic conditions continue to drag down demand, warning the outlook for 2009 remains murky.FedEx reported its fiscal second-quarter earnings rose 3 percent, narrowly topping Wall Street's expectations.
The Memphis, Tenn.-based company earned $493 million, or $1.58 per share, compared with year-ago profit of $479 million, or $1.54 per share. Revenue rose 1 percent to $9.54 billion.
PIER 1 3RD-QUARTER LOSS HITS $36.9M
NEW YORK — Struggling home accessories retailer Pier 1 Imports Inc. said yesterday its fiscal third-quarter loss widened amid a free fall in consumer spending, raising some questions about its ability to weather the economic slowdown.The company's loss for the quarter ended Nov. 29 grew to $36.9 million, or 41 cents per share, from $10 million, or 11 cents per share, a year earlier. Revenue fell 20 percent to $300.9 million.
BURGER KING PUTS BODY SPRAY IN MIX
NEW YORK — Looking to beef up your mojo this holiday season?Burger King Corp. may have just the thing. The home of the Whopper has launched a new men's body spray called "Flame." The company describes the spray as "the scent of seduction with a hint of flame-broiled meat."
The fragrance is on sale at New York City retailer Ricky's NYC in stores and online for a limited time for $3.99.
Burger King is marketing the product through a Web site featuring a photo of its King character reclining fireside and naked but for an animal fur strategically placed.
Burger King is also in the midst of its Whopper Virgins campaign that features an taste test with fast-food "virgins" pitting the Whopper against McDonald's Corp.'s Big Mac.
