April 18, 2024

Chinese Imports Hurt U.S. Solar Companies, Trade Commission Says

The vote clears the way for additional steps by the commission and the Commerce Department that could result in heavy tariffs on Chinese imports. The Commerce Department had responded to the industry filing last month by agreeing to open an investigation into the complaints.

In theory, some tariffs could begin in January. But a decision could be delayed, experts said.

Chinese officials, angered by the trade complaint, have already vowed to investigate American subsidies to renewable energy. And some American importers of solar panels, and operators of solar power installations, have warned that sanctions against the Chinese could raise the cost of solar energy in the United States.

But Ben Santarris, a spokesman for SolarWorld, of Hillsboro, Ore., the lead company in the complaint, noted Friday that the six members of the International Trade Commission had three options in voting: that there was no harm, that there was a threat of harm or that there was actual harm. Because all six commissioners found actual harm, he said, it was “the highest possible outcome we could get in this admittedly incremental milestone.”

Many steps remain in the case.

For the industry’s complaint to succeed, the Commerce Department will next have to make a preliminary ruling that Chinese panel makers have been “dumping” their products in the United States at prices below the cost of making and marketing them.

The preliminary ruling would impose offsetting tariffs, which the department has initially estimated at 50 to 250 percent, to bring the price of Chinese panels in the American market up to what the Commerce Department deems their fair market value.

The Commerce Department will also assess whether the Chinese solar panels have been subsidized, although this review takes two months longer. The subsidy review could lead to additional tariffs of 100 percent or more if the Commerce Department found in favor of the domestic industry.

A spokesman said on Friday that either or both could be delayed. The department could, though, order importers of the Chinese products to put up cash or bonds in anticipation of a final ruling.

In Friday’s action, the International Trade Commission said it had found a “reasonable indication that a U.S. industry is materially injured” by the import of solar panels from China “that are allegedly subsidized and sold in the United States at less than fair value.”

The slumping price of solar equipment was a factor cited by the Energy Department in assessing the bankruptcy of Solyndra, the solar module manufacturer that the Obama administration provided with a $535 million loan guarantee.

Keith Bradsher contributed reporting from Hong Kong.

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Proxy Firm Goes Against Transatlantic-Allied Deal

Institutional Shareholder Services, the biggest proxy advisory firm, wrote in a report that Transatlantic shareholders could get more money, given higher competing bids from Validus Holdings and Berkshire Hathaway.

Transatlantic shareholders are scheduled to vote on the Allied deal on Sept. 20.

The Transatlantic-Allied deal has faced hurdles since it was announced in June. Late last month, Transatlantic’s biggest shareholder, Davis Selected Advisers, publicly opposed the Allied deal. Davis’s holdings represent 9.9 percent of Transatlantic’s voting shares.

I.S.S.’s report bolsters arguments by Validus, another insurance firm that is pursuing a $2.89 billion hostile bid for Transatlantic. Validus has argued that its stock-and-cash bid offers the most for Transatlantic shareholders, and contended that its target is improperly refusing to begin merger negotiations.

Validus has also said that it might offer a higher price if Transatlantic were to begin talks.

Transatlantic has also been talking with a unit of Berkshire Hathaway, which bid $52 a share, in hopes of securing a higher bid.

The value of both the Validus and Allied offers has steadily fallen since each was announced. As of Friday’s market close, Validus’s offer was worth $46.27 a share, while Allied’s was valued at $45.70 a share. Transatlantic’s stock closed at $48.83.

Transatlantic and Allied have argued that their merger makes the most sense, creating a firm that offers both reinsurance and specialty insurance like environmental liability policies.

A spokesman for Transatlantic said in a statement: “We are disappointed with the recommendation because a merger with Allied World would accelerate our ability to accomplish our strategic objectives.”

A spokesman for Allied declined to comment.

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Bucks: The Soon-to-Evaporate Help for At-Risk Homeowners in 32 States

Homeowners at risk of foreclosure in 32 states can get emergency financial aid from the federal government, but they have to act fast. Deadlines are tight, and homeowners are already flooding the program with inquiries.

Within days of the program’s announcement last week, roughly 600 people had contacted CredAbility, a credit counseling agency in Atlanta, to ask for details, a spokesman says. CredAbility is one of 22 agencies chosen to administer the program by the federal government and NeighborWorks America, a nonprofit housing organization.

As part of the Dodd-Frank Act, Congress set aside $1 billion to help struggling homeowners.

If they qualify, homeowners can get interest-free loans to pay a portion of their monthly mortgage, as well as back payments and legal fees, for up to $50,000 or two years, whichever comes first. The loans do not have to be repaid, as long as the homeowner continues making mortgage payments on time for five years. The program is expected to help from 20,000 to 30,000 distressed homeowners.

The program, known as the Emergency Homeowners’ Loan Program, is available to homeowners ineligible for the larger, $7.6 billion “hardest hit” fund, which provided assistance to 18 states that absorbed the worst of the housing crisis.

There are some hoops to jump through though. To qualify, homeowners must be at least three months delinquent on their home loans and have suffered at least a 15 percent income reduction from a job loss due to economic or medical reasons. Other requirements, like income limits, also apply.

To make sure the emergency funds are used up by Sept. 30, the end of the federal fiscal year, there are tight deadlines to meet. Homeowners must submit preliminary applications for the funds by July 22, less than four weeks away. The counseling agencies will screen the applications and submit the names of eligible homeowners to NeigborWorks for review. Because demand is expected to outstrip available funding, finalists likely will be selected by lottery.

Homeowners whose applications are chosen by the lottery will be contacted and given a short period of time, possibly just five days, says Michelle Jones, senior vice president of counseling at CredAbility, to fill out a full application and provide supporting documentation of their eligibility. The list of required documents includes nine separate items, like a letter terminating your employment and a notice of delinquency from your lender. If homeowners fail to meet the deadline, the next name on the list will be contacted.

“It’s a short timeline,” says Ms. Jones, so homeowners shouldn’t wait until they receive news that their application is selected via the lottery to begin gathering their paperwork.

To help make sure only those who are eligible make the first cut, the screening application asks if homeowners had been able to meet their mortgage payments before the job loss. The goal of the program is to help people who can be expected to resume making their payments once the economy improves and able to find work or their health improves. If they were having trouble paying their loan even when they were employed, they are unlikely to benefit from temporary assistance, Ms. Jones says.

But even if they aren’t likely to benefit from the emergency loans, the counseling agencies also can work with those applicants on possible alternatives.

The emergency program is available in the following states: Alaska, Arkansas, Colorado, Hawaii, Iowa, Kansas, Louisiana, Maine, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Mexico, New York, North Dakota, Oklahoma, South Dakota, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.

The program is also offered in Puerto Rico. Five other states also have similar programs: Connecticut, Delaware, Idaho, Maryland, and Pennsylvania.

If you are applying for this program or have attempted to apply for similar ones in the past, please report your experience in the comments.

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Madoff Trustee Seeking Billions More From JPMorgan

Mr. Picard had sought $5.4 billion in damages previously in addition to $1 billion in transfers and claims.

JPMorgan “was an active enabler of the Madoff Ponzi scheme,” David Sheehan, Mr. Picard’s lawyer, said in a statement. JPMorgan officials “not only should have known that a fraud was being perpetrated, they did know,” he said.

Mr. Picard, who has filed 1,000 lawsuits, claiming $90 billion for Madoff investors, first sued JPMorgan in bankruptcy court in December, contending it ignored signs of fraud as billions of dollars flowed from Mr. Madoff’s account at the bank to investors. JPMorgan was Mr. Madoff’s primary banker.

The lawsuit sought $1 billion in fees and transfers, and $5.4 billion in damages, contending that JPMorgan defrauded federal regulators and violated banking law.

The amended complaint makes additional allegations, including that two former employees of an unidentified financial institution observed “nearly daily circular transactions” between an account that Mr. Madoff controlled at their employer and his account at JPMorgan.

After raising questions about the transactions, the financial institution closed the account because it saw no legitimate business purpose for the transactions, according to the complaint.

The amended complaint also includes a request for a jury trial.

A JPMorgan spokesman, Joseph Evangelisti, has said the bank complied fully with all laws and regulations.

JPMorgan has sought dismissal of the case, arguing that Mr. Picard was hired to liquidate the Madoff firm and has no legal right to mount a class action and claim damages for the Ponzi scheme’s investors.

Article source: http://feeds.nytimes.com/click.phdo?i=55ea52b7becb16196915377afcbcdba9