LandAmerica files bankruptcy

new york: Title insurer LandAmerica Financial Group Inc said it has filed for bankruptcy protection and its bigger rival Fidelity National Financial Inc will buy two of its underwriting units. The recent termination of a merger agreement with Fidelity National Financial and the closure of its 1031 Exchange Company’s business caused it to accelerate these actions, LandAmerica said. On Friday, Fidelity National Financial withdrew its $126 million stock offer for LandAmerica. The title insurer said along with the company, its unit LandAmerica 1031 Exchange Services Inc also filed for bankruptcy protection in order to facilitate the sale of its two principal title underwriting subsidiaries. Fidelity National Financial said it would buy LandAmerica’s underwriting units Lawyers Title Insurance Corp and United Capital Title Insurance Co. Also, Chicago Title Insurance Co will buy LandAmerica's Commonwealth Land Title Insurance Co for $158.6 million, Fidelity said. Both Lawyers Title and Commonwealth units are entirely solvent and none of the other many businesses are seeking bankruptcy protection, LandAmerica said. — Reuters

US economic data signals shrinkage

washington: A series of grim economic reports Tuesday suggested the US economy is sinking fast into recession, with tight credit choking activity by consumers and businesses. One report showed US consumer spending dropped 1.0 per cent in October, the steepest fall since September 2001. The Commerce Department report showed the sharp drop in spending came even as incomes rose 0.3 per cent in the month. The report showed a dismal beginning of the fourth quarter for the US economy, which relies on consumer spending for around two-thirds of economic activity. Ian Shepherdson, economist at High Frequency Economics, called the report ‘horrible’ and said much of the drop was linked to weak auto sales. But because of falling prices — an inflation index linked to the report showed a 0.6 per cent decline — Shepherdson said “The fall in real spending was 0.6 per cent after rounding, not quite as massive as the nominal plunge.” Other reports were equally grim. The Commerce Department said orders for big-ticket durable goods fell a whopping 6.2 per cent in October. — AFP