by John Temple Ligon

Wachovia settles

Based in Charlotte, the Wachovia capital markets division will pay $25 million to settle allegations its analysts painted rosy pictures and hyped the stock of companies in order to gain their business, all the while keeping the appearances of objective research. The allegations came from a consortium of state regulators after a four-year investigation. About a dozen of Wachovia's competitors settled the same issue with a combined $1.4 billion in 2003. Wachovia denied any wrongdoing before 2003 and emphasized the allegations concerned only the potential for problems with dishonesty, not actual occurrences of biased research.

Changes in state property tax system

The credit ratings of South Carolina school districts might suffer a negative turn with the new state property tax system. Moody's Investor Services suggested recently the school districts could grow faster than their ability to cover the costs of new students.

Seibels Bruce scores

Universal Insurance Company, a subsidiary of Columbia-based Seibels Bruce Group, received a rating of B/+ (Very Good) by A. M. Best, which cites the insurer's ability to carry its obligations to holders of its policies.

Benefits for laid-off workers

The U.S. Department of Labor said recentlythe laid-off workers at Avondale Mills in Graniteville can get in line for federal benefits. The plant's people qualified for Trade Adjustment Certification, which allowed for partial wage replacement and possible wage subsidies besides retraining. Meanwhile, on the other side of the world where stiff competition for Avondale Mills originated, in China, from 2010 to 2020, the population 60 or older is expected to grow by 170,000 a year. Already, 20% of Shanghai's people are at least 60. China may soon see manpower shortages, and China's textile mills can see stiff low-cost competition originating elsewhere.

Megabus rolls in the Midwest

Hopefully, Megabus, the low-fare bus line, will roll in the Southeast, too. Megabus serves eight Midwestern cities. A round-trip from Chicago to Milwaukee, for instance, can cost as little as $2.50. Around here, that could mean a $2.50 bus fare to Charlotte and back. On each one-way trip the bus carries seven seats for $1 each, but most riders pay closer to $10.

It could happen here

Australia's Macquarie Bank and others have bought Duquesne Light Holdings, the regulated shareholder-owned utility for 587,000 electricity customers in the Pittsburgh area. SCE&G has about 600,000 electricity retail customers in central South Carolina and the lowcountry. The Macquarie deal should close in the first quarter of 2007 if approvals come across from the Federal Energy Regulatory Commission, the state's public utility commission, and Duquesne's shareholders. Macquarie et al. are paying a 22% premium over Duquesne's stock price. The buying consortium will also assume $1.26 billion of long-term debt and $148 million in preferred shares.

It could happen here

The New York Times reported recently the total cost of "scams, schemes and stupefying bureaucratic bungles" in Hurricane Katrina's wake was amounting to $2 billion.

It's not nice to fool Mother Nature

Over the last 20 years, South Carolina has replenished its beaches at a cost of $130 million.

Charleston and Columbia take a look at fixed-rail transit while Charlotte builds

The Charleston Area Regional Transportation Authority commissioned a draft study for a 22-mile commuter rail connector between downtown Summerville and peninsula Charleston, roughly the same route of the country's first regular commercial passenger rail service in 1830. In Columbia, Camden appears to be the best bet as our first commuter rail connection. Charlotte is ready to open its first light-rail line in the fall of 2007, connecting the southwestern section of I-485 and downtown. The connection between downtown Charlotte and UNCC to the northeast is designed and funded and about to begin construction.