BUSINESS BRIEFS
Continental baggage workers reject union
Associated Press
DALLAS — Baggage handlers and cargo agents at Continental Airlines Inc. have voted to reject a union's bid to organize them, the airline said yesterday.
Continental said 3,517 workers voted for the Transport Workers Union out of 7,660 employees eligible to vote. That was 314 short of the majority the union needed in voting that began in December and concluded yesterday. It was the third rejection vote in about as many years.
"Once again, we are pleased that our co-workers recognized the value of our direct working relationship," said Bill Meehan, senior vice president of airport services for Houston-based Continental. "We'll continue to work together to honor the commitments and promises we've made and maintain our culture of trust and success."
MORE WORRIES FOR COUNTRYWIDE
LOS ANGELES — Countrywide Financial Corp., its stock pummeled this week by rumors of bankruptcy and lackluster housing market forecasts, said yesterday the percentage of borrowers who missed payments on home loans last month rose, signaling worsening trouble for the nation's largest mortgage lender and for the entire mortgage sector.
The company also reported that it had funded $23.5 billion in loans in December — a steep decline from $42.8 billion in the year-earlier period.
The new figures drove Countrywide stock down more than 15 percent at one point in the day before it recovered to end down 35 cents, or 6.4 percent, at $5.12.
RESTRUCTURING BOOSTS E-TRADE
NEW YORK — Troubled discount brokerage E-Trade Financial Corp. said yesterday it is restructuring to reduce risk on its balance sheet, in a series of moves that helped lift its shares off their all-time lows.
E-Trade said it recently sold about $3 billion of mortgage-backed securities and municipal bonds, in addition to a November sale of its $3 billion asset-backed securities portfolio. The latest sale of mortgage-backed securities and municipal bonds will result in a loss of less than $5 million.
E-Trade also said it will exit its institutional trading business, affecting about 30 employees. That means that E-Trade will now be solely focused on its retail banking and brokerage operations.
WIRELESS NETWORK PLAN HITS SETBACK
Government and public safety officials said yesterday they remain committed to plans for a national wireless network that could solve critical communication problems during emergencies, even though the most likely builder of the network has shut down.
Industry analysts said Frontline Wireless' demise throws into doubt the viability of the ambitious plan, which would impose unusual constraints on a private operator by forcing it to share airwaves with public safety agencies.
Frontline was expected to be a leading bidder in the Federal Communications Commission auction of wireless airwaves, which starts Jan. 24. "We are still hopeful there will be someone who will emerge as being willing to take on this challenge," the FCC said in a statement.
MBIA TRYING TO SALVAGE RATING
NEW YORK — MBIA Inc. plans to book more than $4 billion in losses, slash its dividend and sell $1 billion in bonds as part of a strategy unveiled yesterday to shelter the bond insurer's crucial financial strength rating.
But analysts said investors doubt all of the bad news is out, and the shares fell sharply.
The Armonk, N.Y.-based insurer, under pressure from the ratings agencies to prove it has enough cash to pay potential insurance claims, will cut its quarterly dividend to 13 cents from 34 cents, saving an estimated $80 million a year. MBIA writes insurance policies to reimburse bondholders if borrowers default.
