Delta shares climb on financing news

Delta Air Lines Inc. learned Monday it would get up to $600 million in financing — provided the cash-strapped airline can persuade its reluctant pilots to accept $1 billion in concessions.

Shares of Atlanta-based Delta soared 17 percent Monday on news of a deal with American Express Travel Related Services Co. Inc.

The deal calls for a $100 million loan, with the remaining $500 million as a prepayment of SkyMiles, which is Delta’s frequent flier miles program. American Express credit card users already can earn SkyMiles with their purchases.

“Time is now very critical for Delta,” said Gerald Grinstein, Delta’s chief executive officer.

Real Estate

Home sales rise

Sales of previously owned homes rose in September to the third-highest level on record, as low mortgage rates beckoned buyers.

The National Association of Realtors reported Monday that after two straight months of declines, sales rose 3.1 percent in September from the previous month to a seasonally adjusted annual rate of 6.75 million units.

Analysts had forecast sales of 6.54 million units.

Insurance

Brokerage CEO resigns

The head of Marsh & McLennan Companies Inc. insurance brokerage stepped down Monday in a move seen as clearing the way for settlement of bid-rigging charges brought by New York’s attorney general.

The resignation of Jeffrey W. Greenberg from the posts of chairman and chief executive was accepted at an emergency board meeting at the company’s New York headquarters.

The board said Greenberg would be replaced by Michael Cherkasky, 54, who last week was named head of Marsh Inc., the company’s insurance brokerage unit.

Before that, Cherkasky had been chief executive of Marsh Kroll, the Marsh & McLennan risk consulting subsidiary.

Financial services

Citigroup settles case; Japan trust unit to close

Financial-services giant Citigroup Inc. will pay $250,000 to settle allegations it used misleading sales material on hedge funds, the National Association of Securities Dealers announced Monday.

The association’s announcement of a censure and fine against Citigroup, the nation’s largest financial institution, came a day before the Securities and Exchange Commission is expected to mandate new oversight for hedge funds — largely unregulated investment pools traditionally for the wealthy that have become more popular with small investors.

Also Monday, Citigroup announced it would close its trust banking unit in Japan within a year.

Japan’s Financial Services Agency last month suspended the private banking division of Citibank, a unit of New York-based Citigroup, and announced it would revoke its license after a year, effectively expelling it from the Japanese market.