Facebook discloses IPO letters with SEC
NEW YORK (AP) -- As Facebook's much-anticipated public stock offering approached, federal regulators wanted to know more about the revenue it gets from mobile devices, its $1 billion deal to buy Instagram and the type of control CEO Mark Zuckerberg has over the company.
Documents filed Friday show the back-and-forth the social-networking company had with the Securities and Exchange Commission on a variety of issues. As all companies do, Facebook Inc. amended its regulatory documents several times ahead of its initial public offering of stock. But the communications leading to those changes weren't public until now.
Facebook Inc. disclosed its letters with the SEC in regulatory filings Friday. The filings are a usual part of the IPO process. The letters are typically confidential until about 30 days following an IPO. Facebook's IPO took place May 17.
The communications in the months leading to Facebook's IPO have received greater scrutiny in part because of investor concerns about the company's ability to make money from its growing mobile audience. Facebook's stock price has lost a quarter of its value since the IPO. Many analysts, however, hold positive long-term opinions.
CFO sentenced for fraud
ALEXANDRIA, Va. (AP) -- The chief financial officer of what had been one of the nation's largest private mortgage companies has been sentenced to five years in prison for his role in a $3 billion fraud scheme.
Delton de Armas, 41, of Carrollton, Texas, was CFO of Florida-based Taylor Bean and Whitaker until its 2009 collapse. He is the eighth person convicted in one of the biggest fraud schemes to emerge from the nation's housing crisis, including company founder Lee Farkas, who received 30 years.
The five-year term was less than the seven years sought by prosecutors.
Taylor Bean executives hid billions in debts with phony accounting and by double-selling mortgages it held to various banks.
Taylor Bean's collapse also helped bring down Alabama-based Colonial Bank, the sixth-largest bank failure in U.S. history.
Chain expanding in China
NEW YORK (AP) -- Burger King is setting its sights on China.
The world's second largest hamburger chain says it will open 1,000 restaurants in the country over the next five to seven years. It's the largest multi-unit development deal in Burger King's history. There are currently just 63 Burger King restaurants in China.
McDonald's Corp. has more than 1,400 restaurants in the country.
Burger King, which has more than 12,500 restaurants worldwide, said Friday that its China expansion is a joint venture with the Kurdoglu family, which runs 450 Burger King restaurants in Turkey, and private equity firm Cartesian Capital Group.
The Kurdoglu family currently operates Burger King's largest international franchise.
Bank failures hit 31 for year
WASHINGTON (AP) -- Federal regulators have seized 3 banks, one each in Florida, Georgia and Tennessee, bringing to 31 the number of U.S. banks that have failed so far this year.
The Federal Deposit Insurance Corp. said Friday that it closed Putnam State Bank in Palatka, Fla., Security Exchange Bank, in Marietta, Ga., and The Farmers Bank of Lynchburg, in Lynchburg, Tenn.
The FDIC lined up other lenders to assume the deposits and assets of each of the banks.
Regulators estimate that the failure of the three banks will cost the insurance fund $100 million.
Health agency bought
The Visiting Nursing Association of Western New York purchased the Wyoming Certified Home Health Agency.
The Wyoming County agency made 13,000 home visits last year. The VNA makes about 375,000 home visits per year.
The VNA, a Kaleida Health affiliate, purchased the Steuben County Public Health & Nursing Certified Home Health Agency and Long Term Home Health Care Program in December.