Local board to weigh in on living wage debate

Members of the Lawrence-Douglas County Economic Development Board decided Tuesday that they wanted to jump into the discussion of a living wage ordinance for the city.

At its quarterly meeting, the board, which is appointed by city and county commissioners, agreed to have a special meeting to issue a recommendation on a proposal to establish a living wage requirement for businesses that receive a tax abatement.

No date was set for the meeting. Instead, board members said they would set a date after it becomes clearer when the city commission will put the issue on its agenda.

Board members expressed concern that a living wage would hurt economic development efforts by eliminating the city from some site selection searches.

Finance

Citigroup to buy Sears’ credit card business

Citigroup announced Tuesday that it would buy the credit card business of Sears, Roebuck & Co. for $3 billion, with the deal for the nation’s eighth-largest credit card portfolio expected to close before the end of the year.

Citigroup, the nation’s largest financial institution, valued Sears’ portfolio at $30 billion, including its in-house and MasterCard-branded cards.

Citigroup said the purchase also included Sears’ Financial Products business and credit card facilities, with approximately 8,300 employees.

Communications

Loral files Chapter 11

Struggling to recover from an industrywide slump, satellite maker Loral Space & Communications Ltd. filed for Chapter 11 bankruptcy protection Tuesday and will sell its six North American satellites to Intelsat Ltd. for up to $1.1 billion.

New York-based Loral said it would reorganize around its manufacturing operations and its remaining network of five satellites.

Health care

Johnson & Johnson reports drop in earnings

Health care giant Johnson & Johnson on Tuesday posted a 27 percent drop in earnings for the second quarter as acquisition-related costs overshadowed strong sales growth. Including one-time charges totaling $900 million, second-quarter net income fell to $1.21 billion, or 40 cents per share, from $1.65 billion, or 54 cents a share.

Earnings

Commerce profits up

Kansas City, Mo.-based Commerce Bancshares reported Tuesday second quarter profits of 75 cents per share, up from 71 cents per share a year ago.

The company operates several bank branches in Lawrence.