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Digest

5 big stories of the week

By JEFF HARRINGTON
Published January 28, 2007

1. Ford posts record loss

Ford Motor loses $12.7-billion in 2006, the biggest loss in its 103-year history.

WHAT IT MEANS: Last year was supposed to be the turnaround year for the Big Three automakers. Instead, General Motors and DaimlerChrysler are expected to report losses as well, which would mark the first time in 15 years that all three were in the red.

2. Insurance overhaul wins approval

Gov. Charlie Crist signs legislation to slow the rise in homeowners insurance premiums.

WHAT IT MEANS: Florida's new governor entered a special session promising rate relief from soaring property insurance bills. The bill he signed is expected to cut premiums by 5 to 22 percent beginning in June. Just slowing down premium increases is a victory, but those expecting significant relief are disappointed.

3. Home loan fiasco widens

Bradenton's Coast Bank warns a mortgage scandal involving St. Peterburg's Construction Compliance Inc. may force its sale.

WHAT IT MEANS: Coast lent up to $110-million to customers of CCI for building about 480 homes, but most have been left unfinished. Time will tell if it's a case of a single overstrapped builder or the beginning of a wider shakeout.

4. Home sales fall sharply

Single-family home sales post miserable numbers in 2006, though prices are still holding up.

WHAT IT MEANS: The numbers are sobering: Existing home sales nationally fell 8.4 percent last year, the biggest drop in 24 years. In the bay area, existing home sales fell 35 percent, capped by a 41 percent plunge in December alone. New home sales nationally weren't much better.

5. Travelers get a reprieve

A new rule requiring a passport to enter the United States from neighboring countries won't be enforced ... yet.

WHAT IT MEANS: Bowing to pressure from airlines, U.S. Customs and Border Protection allowed a 30-day break-in period for the rule, which was supposed to start last week. In the interim, travelers can use government-issued photo IDs, such as driver's licenses or birth certificates, when entering from Canada, Mexico, the Caribbean and Bermuda.

[Last modified January 28, 2007, 01:08:56]