Cable industry offers low-income rates

NEW YORK — Cable companies said Wednesday that they will offer Internet service for $9.95 per month to homes with children that are eligible for free school lunches.

The offer will start next summer and is part of an initiative the Federal Communications Commission cobbled together to get more U.S. homes connected to broadband.

One third, or about 35 million homes, don’t have broadband. That affects people’s ability to educate themselves and find and apply for jobs, FCC Chairman Julius Genachowski said.

“The broadband adoption gap in the U.S. is very large, and the costs of digital exclusion are high and getting higher,” Genachowski said.

The initiative, called Connect-to-Compete, also includes Microsoft Corp., which pledges to sell PCs with its Office software suite for $250 to low-income families. A firm called Redemtech is offering to sell refurbished computers for $150, including shipping.

For those who can’t afford those prices, Morgan Stanley is pledging to develop a microfinance lending program for community-based financial institutions.

All major cable companies are standing behind the $9.95 offer, which will be valid for two years. The price doesn’t include taxes, but the companies are pledging to charge nothing for installation or rental.

Privacy is now No. 1 issue for Facebook

SAN FRANCISCO -- Facebook Inc.’s expected settlement with the Federal Trade Commission is sending a strong message to Internet companies that regulators are getting serious about protecting the privacy of consumers.

The social networking giant could announce a deal with the FTC as early as today over charges that it violated users’ privacy when it changed default settings to make more of their information public.

The settlement taps into growing public concern over online privacy and signals more aggressive enforcement from regulators.

And it appears the message is coming through loud and clear in the corner offices of Silicon Valley and beyond — especially as Internet companies prepare for potentially lucrative initial public offerings.

“Privacy now has the potential to affect the bottom line, which has gotten the attention of CEOs,” said Lisa Sotto, head of the global privacy and information practice at the law firm of Hunton & Williams.

For years online privacy was a sleepy issue hashed out by anonymous lawyers in back rooms. But the explosion of Web usage — and the speed and volume with which data can be transmitted around the globe — has moved the public debate over online privacy to the forefront.

Lawmakers and regulators have responded with pledges to address how Internet companies collect personal information and what they do with it.

The FTC has called for a “do not track” system to make it easier for Internet surfers to keep companies from snooping on their Web activities. The Obama administration has asked for an online privacy bill of rights, while Congress has introduced more than a dozen privacy bills so far this year.

In the cross hairs is Facebook, the wildly popular social network with more than 800 million users that is preparing for a possible IPO that could value the company at up to $100 billion.

Changes to its privacy policies over the years have led to a flood of complaints from consumers concerned over how Facebook handles their personal information. Facebook is also under scrutiny in the European Union for possible breaches of personal data.

“Facebook has to expand its data collection practices to satisfy its largest advertisers to boost the IPO share price. But it also has to appease privacy regulators in the U.S. and the European Union, whose actions could derail Facebook’s pending financial bonanza,” said Jeffrey Chester, executive director of the Center for Digital Democracy, one of the consumer groups that complained to the FTC. “It appears Facebook is poised to neutralize any threats to its future coming from U.S. regulators.”

The proposed settlement with the FTC would prohibit Facebook from making public information that a user originally shared privately without his or her explicit permission. It does not require Facebook to get consent from its users on new sharing features. As part of the settlement, Facebook would have to agree to 20 years of privacy audits.

The settlement stems from a complaint filed by the Electronic Privacy Information Center in December 2009, which asked the FTC to investigate whether consumers were harmed when Facebook changed its privacy settings to disclose more personal information without first getting their permission.

Electric car battery fire draws scrutiny

WASHINGTON — A Chevrolet Volt that caught fire three weeks after its lithium-ion battery was damaged in a government crash test has regulators taking a harder look at the safety of electric car batteries.

The car that caught fire was tested May 12 by a National Highway Traffic Safety Administration contractor at a Wisconsin facility using a relatively new side-impact test intended to replicate crashing into a pole or a tree.

Three weeks later, while the car was parked at the test facility, it caught fire. A NHTSA investigation concluded the crash test damaged the battery, which later led to the fire.

Lithium-ion batteries, which are used in a vast array of consumer electronics, have a history of sometimes catching fire when damaged.

Other companies report no fires

Nissan Motor Co. ,which has more than 8,000 all-electric Leaf models on U.S. roads, and Tesla Motors Inc., with 2,000 cars sold worldwide, said their cars are extensively tested and have not started any fires after crashes.

General Motors spokesman Greg Martin said the test did not follow procedures developed by GM engineers for handling the Volt after a crash. The engineers tested the Volt’s battery pack for more than 300,000 hours to come up with the procedures, which include discharge and disposal of the battery pack, he said.

“Had those protocols been followed after this test, this incident would not have occurred,” he said.

The company had not told the government of its protocols at the time of the test, another GM spokesman said.

Martin said the Volt is safe. After the Volt fire, NHTSA and GM each replicated the crash test and waited three weeks, but in neither case did the cars catch fire, officials said. Nor were the cars’ batteries damaged in those tests, officials said.

NHTSA is also asking manufacturers who currently have electric cars on the market, or who plan to introduce electric vehicles in the near future, for information on what procedures they have established for discharging and handling batteries, including recommendations for reducing fire risks.

“NHTSA is focused on identifying the best ways to ensure that consumers and emergency responders are aware of any risks they may encounter in electric vehicles in post-crash situations,” the agency said in a statement.

“Ultimately, we hope the information we gather will lay the groundwork for detailed guidance for first-responders and tow truck operators for use in their work responding to incidents involving these vehicles,” the agency said.

Coolant leak

After the crash test, NHTSA found a coolant leak and moved the damaged Volt to a back lot, where it was exposed to the elements, said Rob Peterson, a GM spokesman who specializes in electric cars.

Exposure to the weather caused the coolant to crystalize, and that, combined with the remaining charge in the battery, were factors, he said.

NHTSA did not drain the battery of energy as called for under GM’s crash procedures. But at the time, GM had not told the agency of its protocols, Peterson said. NHTSA normally drains fuel from gasoline-powered cars after crash tests, he said.

In a real-world crash, GM would be notified through its OnStar safety communications system and would send a team out to remove the battery for research purposes, he said. The safety of the Volt, which earned a top five-star crash safety rating from NHTSA, “really isn’t being questioned,” Peterson said.

Lithium-ion batteries have been the subject of several recalls of consumer electronics. Millions of laptop batteries made by Sony Corp. for Apple Inc., Dell Inc., Lenovo Group Ltd. and other PC makers were recalled in 2006 and 2007.

Rehab Practice Management makes acquisition in California

Rehab Practice Management LLC said it has acquired Desert Physical Therapy and Sports Medicine, which provides outpatient physical therapy services in Apple Valley, Calif.

Terms of the transaction weren’t disclosed.

With the acquisition of Desert Physical Therapy, Franklin-based Rehab Practice now has four locations in Southern California’s high desert area.

Earlier this year, the provider of rehabilitation management and therapy services acquired another provider of outpatient physical therapy services in Barstow, Calif.

Grease thieves cash in

ROCK HILL, MO. — Bobby Tessler’s temper sizzled just as much as his chicken wings as he stood over his deep fryers Tuesday and thought about the money that recently greased the pockets of thieves instead of his own.

Since he opened his business St. Louis Wing Co. in April, thieves have siphoned hundreds of pounds of grease from a container behind his business, depriving him of about $2,000 that a grease rendering company would have paid him.

“It’s a big deal. There’s a huge underground out there for this stuff,” he said.

Grease thefts have been on the rise since the introduction of biofuels to the market once dominated by animal feed and soap industries. Combating the thefts is difficult because the penalties are minimal despite environmental and financial concerns, said Tom Cook, president of the National Renderers Association.

“Others have said that this is like the new copper,” Cook said. “These thieves are getting more sophisticated. It’s a multimillion-dollar business for them.”

Empty container

Tessler knew something was amiss after he called his rendering company to ask why he had not been paid for the grease he had put in their container during the first six months he was open.

“They told us our container never had anything in it,” he said.

He called police, who then spotted three teenagers removing grease from Tessler’s restaurant and other restaurants in the early hours of Sept. 26. Rock Hill police have arrested one of those three, said Capt. Jorden Lewis.

The suspect, 19, has yet to be charged, but told police that he paid his 17- and 18-year-old accomplices to be lookouts and help keep him awake, Lewis said. He told officer Kevin Clinton that he was from the Springfield, Mo., area.

He also told police that he worked for a legitimate grease rendering company but had been stealing grease from businesses in Arkansas and the St. Louis area to make money on the side.

In a separate case, brothers Gary and Ryan Vaughn were charged with misdemeanor theft after stealing grease from a Chinese restaurant in the St. Louis area. The pair also said they were from Springfield, Mo. The owners of Hong Kong Express said St. Louis police caught the two on surveillance cameras stealing grease Nov. 2.

Nobody cares

News of the arrests and charges isn’t encouraging to local rendering companies, such as Belleville-based Kostelac Grease Service.

“It’s a crime that nobody really cares about,” said John Kostelac, who co-owns the business with his brother, Jim Kostelac. “When copper thieves get caught they are sent to prison, but when somebody gets caught stealing grease, they get a slap on the hand and are turned loose and are out stealing again.”

Tell-tale signs

Kostelac said his drivers can tell when a business has been hit because the thieves often leave a greasy mess behind. They usually have 1,000-gallon tanks on trucks and do not carry cleaning supplies with them in case of a spill, he said.

It’s also hard to estimate the value of the stolen grease. It is a commodity; the purer the product, the more it is worth, Kostelac said.

Electric car battery fire draws scrutiny

WASHINGTON — A Chevrolet Volt that caught fire three weeks after its lithium-ion battery was damaged in a government crash test has regulators taking a harder look at the safety of electric car batteries.

The car that caught fire was tested May 12 by a National Highway Traffic Safety Administration contractor at a Wisconsin facility using a relatively new side-impact test intended to replicate crashing into a pole or a tree.

Three weeks later, while the car was parked at the test facility, it caught fire. A NHTSA investigation concluded the crash test damaged the battery, which later led to the fire.

Lithium-ion batteries, which are used in a vast array of consumer electronics, have a history of sometimes catching fire when damaged.

Other companies report no fires

Nissan Motor Co. ,which has more than 8,000 all-electric Leaf models on U.S. roads, and Tesla Motors Inc., with 2,000 cars sold worldwide, said their cars are extensively tested and have not started any fires after crashes.

General Motors spokesman Greg Martin said the test did not follow procedures developed by GM engineers for handling the Volt after a crash. The engineers tested the Volt’s battery pack for more than 300,000 hours to come up with the procedures, which include discharge and disposal of the battery pack, he said.

“Had those protocols been followed after this test, this incident would not have occurred,” he said.

The company had not told the government of its protocols at the time of the test, another GM spokesman said.

Martin said the Volt is safe. After the Volt fire, NHTSA and GM each replicated the crash test and waited three weeks, but in neither case did the cars catch fire, officials said. Nor were the cars’ batteries damaged in those tests, officials said.

NHTSA is also asking manufacturers who currently have electric cars on the market, or who plan to introduce electric vehicles in the near future, for information on what procedures they have established for discharging and handling batteries, including recommendations for reducing fire risks.

“NHTSA is focused on identifying the best ways to ensure that consumers and emergency responders are aware of any risks they may encounter in electric vehicles in post-crash situations,” the agency said in a statement.

“Ultimately, we hope the information we gather will lay the groundwork for detailed guidance for first-responders and tow truck operators for use in their work responding to incidents involving these vehicles,” the agency said.

Coolant leak

After the crash test, NHTSA found a coolant leak and moved the damaged Volt to a back lot, where it was exposed to the elements, said Rob Peterson, a GM spokesman who specializes in electric cars.

Exposure to the weather caused the coolant to crystalize, and that, combined with the remaining charge in the battery, were factors, he said.

NHTSA did not drain the battery of energy as called for under GM’s crash procedures. But at the time, GM had not told the agency of its protocols, Peterson said. NHTSA normally drains fuel from gasoline-powered cars after crash tests, he said.

In a real-world crash, GM would be notified through its OnStar safety communications system and would send a team out to remove the battery for research purposes, he said. The safety of the Volt, which earned a top five-star crash safety rating from NHTSA, “really isn’t being questioned,” Peterson said.

Lithium-ion batteries have been the subject of several recalls of consumer electronics. Millions of laptop batteries made by Sony Corp. for Apple Inc., Dell Inc., Lenovo Group Ltd. and other PC makers were recalled in 2006 and 2007.

Groupon shares soar 30 percent in public debut

NEW YORK — Groupon, the company that pioneered online group discounts, saw its stock rise about 30 percent in its public debut Friday, showing strong demand for an Internet company whose business model is considered unsustainable by some analysts.

Groupon’s stock initially jumped as high as $31.14 per share — or nearly56 percent — from its opening price of $20 a share before losing some steam.

Shares closed a little down from that, finishing its first session of Nasdaq trading at $26.11 per share on a day when the Dow Jones industrial average lost 0.5 percentage points and failed to crack the 12,000-point level.

Big fluctuations are common for fresh public companies, and Groupon’s first-day rise was largely expected. What happens next is the bigger question.

Analysts said this doesn’t ease worries about the risks concerning the company — especially as the stock price increases.

“Until investors see the full profit model unfold over time, expect this stock to be highly volatile with increasing risk as the market cap rises,” said Kathleen Shelton Smith, principal of Renaissance Capital, which operates IPOhome.com. “The first day of trading is typically more about supply and demand. Fundamentals will take over in the long run.”

Groupon has faced scrutiny about its high marketing expenses, enormous employee base and even the way it accounted for revenue until an SEC inquiry prompted a restatement.

Chicago-based Groupon Inc. sends out frequent emails to subscribers offering a chance to buy discount deals for anything from laser hair removal to weekend getaways. The company takes a cut of what people pay and gives the rest to the merchant.

Though it’s spawned many copycats after its 2008 launch, Groupon has the advantage of being first. This has meant brand recognition and investor demand, as evidenced by its sizzling public debut.

The stock is trading on the Nasdaq Stock Market under the symbol “GRPN.”

“This is not Facebook where they can do no wrong,” said longtime IPO analyst Scott Sweet, the owner of IPO Boutique. He called Groupon an “accident waiting to happen.”

Sweet is among analysts who question Groupon’s business model, its high marketing expenses and frantic hiring pace that has swelled its ranks to more than 10,000 employees.

Still, the sale of its 35 million shares means Groupon’s initial public offering of stock raised about $700 million, minus investment banking fees, etc.

Home prices in Nashville area slip

Single-family home sales in the Nashville area dropped 4.6 percent in October from their September levels, the second consecutive month-to-month dip after a sales sprint this summer.

There were 1,446 single-family homes sold in the nine-county Nashville market last month compared with 1,513 in September, the Greater Nashville Association of Realtors reported on Wednesday.

But compared with year-ago sales, October’s report showed single-family sales were up 12.6 percent.

Realtors called that a bullish sign and a more sensible comparison than month-to-month swings, which can be influenced by weather, holidays and other factors.

“This is very indicative of us having reached a floor and quite possibly a turnaround,” said Jim McCann, head of mortgage banking at Nashville-based Avenue Bank, noting that four straight months of year-over-year sales gains are encouraging. “If it’s sustained, then you’ll likely see a reversal in property values,” McCann said. “They’ll start to go up.”

At the moment, though, median prices are slipping lower and other analysts don’t expect much relief from that trend until the middle of next year here.

Supply drops

Home inventory decreased 12 percent from year-ago levels, with roughly an 8.5-month supply of homes up for sale as last month ended, compared with an 11-month supply a year earlier, according to GNAR’s figures. Those estimates are based on sales rates of homes at each point in time.

Some Realtors suggest that the shrinking inventory means more on-the-fence homebuyers are beginning to act and eat into supply. In healthy economic periods, a six-month supply of homes is considered normal.

“This shows that we’re willing to buy homes without a shot in the arm,” said broker Price Lechleiter of Zeitlin & Co., referring to federal incentives for first-time homebuyers that ended in July 2010.

Other real estate analysts say, however, that local home prices are likely to languish until next summer before showing renewed signs of life.

In the Nashville metropolitan area, average home prices are expected to fall an additional 0.1 percent by the summer of 2012, according to Fiserv Case-Shiller projections released this week.

The median home price for a single-family home in October was $162,000, the lowest since April and a decline of 6.6 percent compared with last fall here.

The 188 condominium units sold were nearly the same as the previous month. Condo sales are up 30 percent over year-ago sales volumes, though, with median prices much weaker.

The median condo price of $139,515 was the lowest since February and represents an 8.8 percent decline in price from October 2010.

According to Fiserv Case-Shiller, Nashville area home prices are expected to gather some momentum beginning with the second quarter of next year and then rise 3.7 percent by summer 2013.

“There’s still some foreclosures in the market, which can drag median prices down,” Lechleiter said. “I’m optimistic that those numbers will improve next year.”

“Newcomers seem pleased with buying opportunities — both in inventory and price — available to them here in the Middle Tennessee area,” GNAR President Alice Walker said in a statement. She said the Middle Tennessee region is “increasingly attractive to both corporations and families.”

Social media consultants guide owners through Web marketing

DALLAS — Jerry Wright is a whiz when it comes to inventing protective face gear but considers himself a “social media idiot.” Nick Schaeffer is a master electrician, not a master of the virtual universe.

Yet both are finding marketing success on Facebook, YouTube, LinkedIn, Twitter and other social media.

They routinely post blogs, star in slick, newslike videos and continuously fine-tune their social media strategies to the ever-shifting online landscape — yet spend minimal time fixated on it.

How?

They’re among the 200 small and midsize companies that have outsourced their social marketing to Splash Media LP in Addison, Texas, near Dallas, in the past year and a half.

Most clients pay $5,000 a month to get four blogs ghostwritten, one custom video, monitoring of social network chatter and monthly assessments of how well their strategies are working.

“We can’t just get people excited about social. It’s got to work,” said Chris Kraft, Splash Media’s co-founder and chief executive. “Our clients don’t have the luxury of throwing tens of thousands of dollars doing branding experiments. They have to have real customers come across the transom with every dollar they spend.”

Splash Media’s multi-million-dollar studio rivals those of major news organizations. It has a virtual backdrop to create custom sets, and its state-of-the-art technology can make even a small electrician look big time.

With 2011 revenue expected to reach $14 million, Splash employs 84 full-timers, including 40 account managers.

It also contracts with 130 blog ghostwriters (mostly former teachers and journalists), as well as a video production crew and on-air talent.

“When you look under the hood of social media, it’s really just the next iteration of Internet marketing,” said Paul Slack, co-founder and chief strategist. “We help clients find where their target audiences are. Then we help them fish in those ponds.”

There are more than 200 of those social ponds, but Splash Media focuses on the big lakes: Facebook, Twitter, LinkedIn and YouTube.

“We go to where the eyeballs are,” Kraft said. “We don’t claim to be experts. We’re learning every day.”

Displacing Twitter

Lately there’s rapid eye movement to Google+, which Kraft predicts will be the No. 2 social media platform behind Facebook, displacing Twitter in two years.

Splash Media is a combination of Kraft’s video production company and Slack’s Internet marketing company, WebDex Inc., following a merger in early 2010.

Both men are in their early 40s and have been entrepreneurs since their high school days in Dallas. Both dropped out of college their freshman year.

Kraft, who produced a No. 1 country music video early in his career, got into corporate video production in 1995.

“I got together with my filmmaking buddies and said, ‘Corporate videos suck. What if we skip the agencies and go direct to the companies’ marketing teams and tell them: ‘Look, we can bring all these filmmaking and storytelling abilities to your corporate videos.’ ”

In 2004, he shifted into the Internet, forming Splash Media with funding from Timbercreek Capital LP, owned by a former boss.

Kraft’s idea was to create corporate TV networks on the Internet.

“You didn’t have to be part of a health care network or an automotive network,” Kraft recalls thinking. “You could be McAfee network or Adobe TV with your own TV station. They could create their own information pipeline to communicate with both internal audiences and its customers.”

Adobe bought the concept in 2007. “They took their top product evangelists (a glorified euphemism for top salespeople) into our studio and created dynamic training and educational pieces, which were really marketing pieces.”

McAfee Inc., which is still a client, signed on the next year.

Slack, in a parallel universe, began his Internet journey working for an e-commerce company that went bust.

In the fall of 2000, Slack took about $10,000 that he had left to start WebDex, which helped businesses attain visibility on search engines and generate sales leads. “Everyone was thinking: ‘Plug a shopping cart on the end of your website, and you’ll make a bazillion dollars,’” Slack laughs. “Nobody was thinking: ‘How are you going to get people to your Internet store?’ ”

Clients paid Slack a monthly retainer of $2,000 to $3,000. He wanted to offer videos for an additional $500 a month. Kraft thought $15,000 a video was more like it. In late 2009, they came up with an answer. They combined Slack’s expertise with Kraft’s content creation for a monthly fixed rate.

Route can get bumpy

It’s turned into an avenue for success, but one fraught with potholes.

“Two companies coming together,” began Slack. “Two cultures coming together. And we immediately launched a new product that nobody had ever delivered before. There were definitely growing pains.

“But at least we didn’t kill each other.”

The highest-paying client, a marketing company in the Washington area, has a $30,000 monthly tab. “That’s an outlier,” Kraft said. “Eighty percent of our clients pay $5,000. On the low end, we have an electrician with five trucks bopping around the metroplex. That’s a big investment for a smaller company.”

Kraft is talking about Schaeffer, whose knees knocked the first time he stared into the camera and read his script.

Now that he’s made a dozen information videos, the 44-year-old owner of ElectricMan Inc. in Dallas has found his groove.

“I’m able to release the passion that I have, and they capture it,” said Schaeffer, whose video topics include lighting tips when remodeling a home, how to protect a home from power surges and how to check the wiring when buying an older home.

He pays Splash about $3,000 a month — his most expensive and most effective advertising expense. “I’m getting a more intelligent customer who is more informed about what they want.”

Renay San Miguel, former television reporter and anchor for CNBC and CNN Headline News, is Splash Media’s chief content officer, helping write scripts and doing on-camera interviews.

Retailers gear up for holiday season with cautious shoppers

NEW YORK — Americans were shopping in October, but they were spending at a slower clip than expected as they faced a barrage of bad economic news.

October revenue at stores open at least a year — an indicator of a retailer’s health — rose3.7 percent from the same month a year ago, according to the International Council of Shopping Centers’ tally of 25 retailers.

But October’s increase is weaker than the 5.5 percent revenue gain in the prior month. And 13 of 19 retailers missed Wall Street estimates for October revenue, according to Thomson Reuters, including big merchants such as Macy’s, Saks and Target.

The results reflect Americans’ cautious spending habits. Consumers continue to worry about the challenges of the weak economy, including high unemployment and a weak housing market.

At the same time, those who have jobs have paid down their debt since the recession and are starting to feel more comfortable about spending. Retailers hope they’ll continue to do so during the holiday shopping season, but consumers aren’t giving them a clear sign they will.

“The softer trend in my mind raises questions of whether this is a new trend or a temporary respite before it gets back to stronger spending,” said Michael P. Niemira, chief economist at the International Council of Shopping Centers.

Uncertainty over jobs was underscored by a massive crowd that turned out in Murfreesboro, Tenn., this week as auto industry job applications were taken at a local hotel.

Robert Darnell of Columbia, Tenn., had lost his job at a pencil plant more than two years ago. Since then, he has been searching for work every week.

This week — with his unemployment checks about to run out — he was one of an estimated 5,000 people who stood in a line that wrapped around Embassy Suites in Murfreesboro for a job fair held by Yates Services, a maintenance contractor for the Nissan plant in Smyrna, Tenn., where the Asian automaker has an assembly plant.

“I think I’ve got two checks left,” said Darnell, 42, who said his job was shipped to Mexico.

Yates Services plans to hire 1,600 full-time workers for Nissan for part-sorting, production line and forklift positions. The jobs will pay an average of $12.50 an hour with benefits starting after 90 days.

Mixed forecasts ahead for holidays

The National Retail Federation, the nation’s largest retail trade group, predicts revenue in November and December will rise 2.8 percent to $465.6 billion this year. That would be smaller than the 5.2 percent increase last year, but higher than the average over the last 10 years.

“Consumers are regrouping and retrenching and saving their pennies for the holiday season,” said Ken Perkins, president of Retail Metrics, a research firm.

But stores likely will have to work hard to get people to part with their money during the season.

Many retailers already are beginning to offer holiday discounts to draw shoppers in early. Amazon.com launched a sale this week that included such deals as 10-carat white gold diamond-studded earrings marked down to $270 from $1,199.99.

“This is an effort to stimulate the holiday season to be longer and longer,” said Janet Hoffman, managing director of Accenture’s global retailing practice.

Retailers are doing more than discounting. Some, such as Wal-Mart Stores Inc., are offering to match the cheaper prices consumers find at competitors. And other stores, including Target and Macy’s, this week have announced expanded hours on Black Friday, the day after Thanksgiving and the official kickoff to the holiday season.

Retailers have some reason to be optimistic that the incentives will work.

Although October results weren’t as promising as retailers had hoped, revenue was affected by unseasonably warm weather during the beginning of the month and then a snowstorm at the end of the month in a portion of the country. And most merchants reported revenue that was only slightly off from Wall Street estimates.

Wholesale club operator Costco Wholesale Corp.’s revenue at stores open at least a year actually climbed 9 percent in October, slightly lower than the 9.2 percent increase analysts surveyed by Thomson Reuters had predicted. And Limited Brands said revenue at stores open at least a year rose 6 percent in October, down from analysts’ estimates of 6.2 percent.

A few merchants reported much more disappointing results. Target’s 3.3 percent increase was below the 4.2 percent gain expected by Wall Street.

Macy’s Inc. posted a 2.2 percent increase in revenue at stores opened at least a year, which fell short of the 3.6 percent increase that Wall Street analysts had anticipated.

What you get for $200,000

Rutherford County

118 Silverstone Drive, Murfreesboro 37130

Year built: 1998

Square feet: 1,960

Description: This three-bedroom, 2½-bath home is on a large, treed lot on a cul de sac. The home features a vaulted ceiling in the great room, built-in bookcases and a fireplace. It has new paint. There is room for an office or a fourth bedroom in the loft area on second level. The master suite is on the main level.

More information: Re/Max Choice Properties, 615-227-1514

More photos: http://www.homefinder.com/TN/Murfreesboro/78862859d_118_Silverstone_Dr

Williamson County

1001 Watauga Court, Thompsons Station 37179

Year built: 2003

Square feet: 2,364

Description: This three-bedroom, 2½-bath home is on a corner lot in the Newport Crossings neighborhood. It features an updated kitchen, upstairs bedrooms, a half-bath downstairs, formal dining room and a large bonus room. The back yard backs to a common area with a gazebo.

More information: Keller Williams Realty, 615-302-4242

More photos: http://www.homefinder.com/TN/Thompsons_Station/76016207d_1001_Watauga_Ct

Sumner County

1009 Washington Drive, Cottontown 37048

Year built: 2003

Square feet: 1,970

Description: This three-bedroom, two-bath home is on an acre lot minutes from I-65. It features an above-ground pool, a 12-by-30 building with electric and cable, and a screened back porch, deck and patio. Outside, three sides of the house are brick. The back yard is fenced. Interior features include a large bonus room.

More information: White House Realtors, 615-672-0302

More photos: http://www.homefinder.com/TN/Cottontown/80905052d_1009_Washington_Dr

Pinnacle Airlines points to better years

MEMPHIS — Pinnacle Airlines Corp. figures to remain in rebuilding mode for much of next year.

Executives of the Memphis-based owner of Pinnacle, Mesaba and Colgan airlines wouldn’t say how soon they expect to turn a profit within the next year or so, but they pointed to a brighter revenue picture by 2013 after reporting a multimillion-dollar loss for the most recent quarter.

The company reported modest losses for the third quarter after having braced investors for disappointing results in a pre-release last week.

Read the full report: Memphis-based Pinnacle Airlines reports quarterly loss, in 'rebuilding' mode at The Commercial Appeal.

Jim Reeves' musical legacy goes on trial in January

More than 40 years after the death of country singer “Gentleman” Jim Reeves, a Nashville court will determine the fate of his musical legacy – and the ownership of his considerable posthumous royalties.

Reeves heirs – chiefly his nieces – and the surviving second husband of his widow Mary Reeves Davis will return to Davidson Country Probate court January 23.

The two-day trial will determine how big a stake Terry Davis, the second husband, has in Mary Reeves Estate, which owns Jim Reeves’ music royalties. Those royalties have ranged from $100,000 to $400,000 per year, according to court records.

Jim Reeves was a country crooner and ambassador of the “Nashville Sound” of the 1950s and 1960s. One of his best-known songs, "He’ll Have to Go," includes the lyrics “Put your sweet lips a little closer to the phone.” He died in a Brentwood plane crash in 1964 at the age of 39.

His widow Mary Reeves Davis managed his posthumous career, which included songs her husband recorded before his death that went on to become hits during the 1970s and 1980s.

She died in 1999, suffering from Alzheimer's, and the case has continued unresolved since then. The case has taken some strange turns, with allegations Terry Davis, a former Baptist minister, kept Mary Reeves Davis in filthy conditions even as she struggled with dementia. Authorities found 114 dead cats in the freezer of their rural Tennessee home, before Mary was taken to a nursing facility. A multi-million dollar sale Terry Davis helped broker that would have transferred all of Jim Reeves’ musical catalog from Mary Reeves Davis to a carnival operator later convicted of bank fraud was invalidated by a federal court.

Davis is suing for a bigger share of his late wife’s estate than her 1976 will specified. The will said Terry Davis would get $100,000 and some properties. He is petitioning for a percentage of the overall estate.

The trial was originally scheduled for October.

No-fee banks cash in

When several major banks announced plans to impose new debit card fees on their customers earlier this fall, Avenue Bank’s marketing manager, Lisa Meiers, handled a daily barrage of questions from customers about the bank’s own fees.

So, Avenue Bank launched a print and online campaign to make the message plain: The bank does not charge swipe fees — a fee of up to several dollars a month for using a debit card to make purchases.

Avenue Bank’s weekly account openings have tripled from normal levels since those ads started appearing, riding a wave of consumer anger over big-bank practices. “In my 14 years in the banking industry, I have never seen a customer response like this one,” Meiers said.

Avenue is among a crop of local community banks and credit unions that are winning new business as once-loyal customers of other institutions close accounts in response to new fees.

A number of institutions are making loud and widespread no-fee advertising messages to lure unhappy customers while local credit unions just try to keep pace with scores of new members knocking on their doors.

“This is prime time for small banks to strike,” said Tim Chen of NerdWallet.com, a website focused on credit card deals. “And customers should expect new fees down the pike next year, so this behavior will probably continue.”

Banks that, together, command more than half of the market share in the Nashville area have decided to charge depositors as much as a $5-per-month debit card fee and other types of service fees to recapture expected profit losses due to rules under the federal Dodd-Frank financial overhaul.

Regions Banks, Bank of America, SunTrust and First Tennessee Bank comprise 51.5 percent of Nashville’s market share based on deposits, according to the latest reports from the Federal Deposit Insurance Corp.

All four banks have started collecting or pledged to impose monthly debit card swipe fees of varying amounts. A few other big banks, Chase and Wells Fargo among them, have recently backed away from the idea of monthly fees on customers’ debit card purchases after a wave of complaints.

How big of an impact customer flight to smaller rivals will have on larger banks’ core customers isn’t yet clear, said Geoff Knapp, vice president of online banking for Fiserv, which develops Internet bill-paying systems. Many customers, for example, who use bill pay services or who have direct deposit find it inconvenient to unravel themselves from the ties that bind them to their existing bank accounts, he said.

“I suspect there will be some churn from the new fees,” Knapp said. “But if you’re a deep, deep user of online services, you’re probably highly satisfied with the bank.”

Still, a rival marketing strategy to capture frustrated big-bank customers seems to be taking root.

Consider CapStar Bank, where the message of the bank’s recent newsletter highlighted its no-new-fee philosophy. “We’ve definitely had more interest expressed and more frustration about fees referenced to us,” the bank’s president, Claire Tucker, says.

Credit unions also may be seeing a rush of interest. Nashville-based Cornerstone Financial — owned and operated by its members — has seen a spike in interest from potential customers hoping to learn how credit unions work, Cornerstone spokesman Will Frye said.

Cornerstone hasn’t had to spend more money to entice new customers. It has happened naturally, Frye said.

“We’re seeing a mass exodus out of major banks,” Frye said. “The word is spreading so fast that we haven’t had to spend a lot of money in advertising. We’re pushing our services lightly, and still, the reaction is more than we expected.”

New customer accounts at Cornerstone have doubled year over year, according to Hank Flurry, Cornerstone CEO.

Nationally, Web traffic at the National Association of Federal Credit Unions’ credit union locator site has grown more than 350 percent in the past week, spokeswoman Patty Briotta said.

In turn, some banks that have introduced monthly debit card fees in Middle Tennessee — such as Regions Bank — are using customers’ vocal concerns as an opportunity to reach out to customers, said Jim Schmitz, the bank’s regional president.

After Region’s revamped fees were announced, the bank called hundreds of customers to explain the shift in the financial industry and to stress the importance of a strong banking relationship.

“Are our branch teams working a little harder now? Yes. But we did prepare for it, and we stay engaged with customers in a conversation about it,” Schmitz said.

Many explore options on Internet

Other disenchanted bank customers have turned to the Internet for banking alternatives.

For instance, Steven Moore, 36, of Nashville found an online bank that he considers not just fee-friendly, but one through which he can even earn a buck.

Moore opened an account with Delaware-based online bank PerkStreet. The bank gives debit card customers up to 2 percent back on purchases for the first three months. “I wouldn’t set up a new account at a bank if I knew there would be debit card or other fees,” Moore said.

A PerkStreet spokesman said Nashville is the bank’s 10th most popular market in the nation, adding that after Bank of America announced its monthly debit card fees last month, the company’s new accounts doubled from the previous daily record.

In the meantime, some customers are rallying around an online movement to switch to credit unions on Nov. 5, in an event dubbed in social media come-ons as Bank Transfer Day. It has gained more than 38,000 supporters on Facebook.

But no one can be sure if small banks and credit unions will be able to continue free services in the coming years, said Greg McBride, Bankrate’s senior analyst.

“The economics of banking are changing. It’s an open-ended question as to how they will be able to maintain free checking account services,” McBride said. “I suspect that some will, some won’t.”

Solar loans get scrutiny

WASHINGTON — On the defensive over a half-billion-dollar loan to a now-bankrupt solar company, the White House on Friday ordered an independent review of similar loans made by the Energy Department, its latest response to rising criticism over Solyndra Inc.

The announcement came as House Republicans prepared for a possible vote next week to subpoena White House documents related to the defunct California company.

White House officials said the review would assess the health of more than two dozen other loans and loan guarantees made by the Energy Department program that supported Solyndra. Congressional Republicans have been investigating the company’s bankruptcy amid embarrassing revelations that federal officials were warned it had problems but nonetheless continued to support it, and sent President Barack Obama to visit the company and praise it publicly.

Guarding tax dollars

“Today we are directing that an independent analysis be conducted of the current state of the Department of Energy loan portfolio, focusing on future loan monitoring and management,” White House chief of staff Bill Daley said. “While we continue to take steps to make sure the United States remains competitive in the 21st century energy economy, we must also ensure that we are strong stewards of taxpayer dollars.”

Daley said the review would be conducted by former Treasury official Herb Allison, who oversaw the Troubled Asset Relief Program, part of the 2008 Wall Street bailout. The review would not look at the Solyndra case but would evaluate other loans worth tens of billions of dollars and recommend steps to stabilize them if they appear to have problems like the loan to Solyndra.

The White House has already refused a request by the Republican-controlled House Energy and Commerce Committee for all its internal communications about Solyndra, which closed its doors and filed for bankruptcy protection earlier this year, costing 1,100 jobs.

GOP questions

GOP Reps. Fred Upton of Michigan and Cliff Stearns of Florida said the subpoena was necessary because the White House has denied its requests for documents. Upton chairs the Energy and Commerce panel, while Stearns leads a subcommittee on investigations. Recently released documents show that White House officials participated in decisions regarding the Solyndra loan.

“What is the White House trying to hide from the American public?” Stearns and Upton asked in a joint statement.

More banks abandon debit card fees

Add First Tennessee Bank and Bank of America to the growing list of financial institutions scrapping monthly fees for making debit card purchases — a development being hailed by consumer advocates as a victory for customers.

First Tennessee Bank will not be charging customers to use debit cards, becoming the latest bank based in Tennessee to turn back from its plans to impose monthly debit card fees. The bank’s proposed fee of 4 cents per debit card transaction up to $3 a month was slated to start later this month.

Meanwhile Bank of America dropped plans for a $5 per month fee when customers use debit cards to make any purchases in a given month.

The twin announcements follow news that Regions Bank, SunTrust, Wells Fargo & Co. and JP Morgan Chase will be scrapping their planned or existing debit card swipe fees.

The about-face comes as customers petitioned many of the banks, and mobilized to close their accounts in some cases and take business elsewhere.

First Tennessee contended its customers weren’t upset by its fee structure, but the bank abandoned debit card monthly charges to stay competitive with other institutions, said Dave Miller, head of consumer banking.

Anne Pace, a spokeswoman for Bank of America, declined to say whether the company experienced a spike in account closures since announcing plans for its debit card fee in September.

But in a statement Tuesday, Bank of America’s co-Chief Operating Officer David Darnell said the decision was based on customer feedback. “Our customers’ voices are most important to us. As a result, we are not currently charging the fee and will not be moving forward with any additional plans to do so,” he said.

Pace added that a “changing competitive marketplace” also played a role.

The retreat by the banking industry on debit fees comes amid growing public anger over higher bank fees.

“When I heard about the fee, it was the last straw for me,” said Molly Katchpole, a 22-year-old nanny who started the online petition urging Bank of America to drop the debit fee. “I’m living paycheck to paycheck and one more fee was just too much.”

Katchpole said it was exciting that customers were able to sway a big corporation to rethink its decision. But she already closed her account a few weeks ago and said the bank’s decision won’t win her back.

She plans to stay with her new community bank in Washington, D.C.

Other customers may be more forgiving.

Diane Abela, a 38-year-old Manhattan resident, said she had been waiting to see if Bank of America would back down on its plan before closing her account. “I had a feeling if there was big outcry, they wouldn’t go through with it,” said Abela. “I’m unemployed and $5 makes a big difference. When you’re working on a budget every week, it’s the last thing you need.”

The wave of fee hikes had come into play as the industry adjusted to new federal regulations. In particular, banks in the past year have blamed their fee hikes on a new federal regulation championed by Sen. Dick Durbin of Illinois.

Banks begin to open up loan spigot

Franchise owners Ted Bertuca Sr. and his son had no trouble securing a commercial loan for a McDonald’s location planned for Mt. Juliet later this year, pointing to what may be a long-awaited thaw in some sectors of local business lending.

“The timing is right to do this,” said Bertuca, who operates 21 McDonald’s restaurants in the Nashville area. “And the bank has been there to support us.”

As many regional and national banks horde cash amid lingering economic uncertainties, the lending needle may be starting to move in a positive way in Middle Tennessee, most strikingly in commercial financing.

Banks with a major presence in Middle Tennessee have posted greater year-over-year loan volumes in the third quarter and have seen loan portfolios rally with double-digit percentage gains for commercial projects and business borrowers.

Though loan growth is rather modest, banking analysts say it’s among the first encouraging indicators that the tight-fisted lending environment of the past three years has started to ease and market confidence has begun to rebound.

“Banks have been a little more proactive,” said bank analyst Chris Marinac, with Atlanta-based FIG Partners. “Banks are fed up with holding onto cash. And so they’re pushing a little harder to find some loans they can close.”

At Birmingham, Ala.-based Regions Bank, the Nashville market’s largest bank by deposits, commercial and industrial lending grew in the third quarter by nearly 13 percent and loan commitments in the commercial sector grew $700 million from last quarter.

“Everybody is out there putting money to work,” said Jim Schmitz, the bank’s local president.

Pinnacle Bank’s overall loan volume ramped up in the third quarter by 4.2 percent from the same period last year. The bank showed the strongest loan improvements with commercial and industrial projects, with lending expanding 12.4 percent over the prior-year period.

Commercial lending at Fifth Third Bank jumped almost 10 percent in the third quarter, too.

Guggenheim Securities analyst Marty Mosby said of commercial and industrial lending, “the economy is actually working the way it’s supposed to” as companies borrow to finance new machinery and expand to bolster productivity.

“Given where interest rates are, it’s a great time to invest,” Mosby said. “People don’t want to put money in stocks, so you’re going to see more deposit growth and commercial loan growth.”

Obstacles remain

For individuals and small businesses, however, lending improvements don’t indicate a return to pre-recession volumes.

Most regional banks in Middle Tennessee reported single-digit progress for consumer and small business loans — falling far short of the gains made in the larger commercial sector. Weak demand and still-stringent underwriting standards endure as prime obstacles for many borrowers.

The Federal Reserve’s most recent loan officer survey shows that banks are starting to relax underwriting requirements overall. But only about 10 percent of lenders have eased standards for residential loans and small businesses.

In addition, Pepperdine University surveyed 1,667 small businesses recently and found that among small businesses that sought loans in the past year, nearly half were denied.

Part of the explanation is that small firms tend to be riskier as borrowers. Plus, small-business lending usually recovers more slowly than the broader commercial sector, said Gerard Cassidy, a banking analyst at RBC Capital Markets.

“Banks’ primary product is loans. It makes logical sense that banks want to lend,” Cassidy said. “The problem now becomes: ‘How do you find more qualified borrowers?’ To qualify for a loan in 2011 is meaningfully different than it was in 2006,” he said.

Nevertheless, improved commercial lending will not soon boost banks’ profit margins drastically, Cassidy said, because a new raft of bank regulations and stubbornly weak consumer demand are pulling on every potential gain.

“The Golden Age of banking is over. The economic downturn really killed banks’ glory days,” he said. “We’re not going to see that kind of profitability again for decades.”