Deutsche Bank AG said Friday it does not intend to pay $14 billion to settle civil claims with the U.S. Department of Justice for its handling of residential mortgage-backed securities and related transactions.
The Frankfurt, Germany-based lender said negotiations over the amount of the settlement are just beginning.
Deutsche Bank is among many financial institutions investigated over dealings in shoddy mortgages in the run-up to the 2008 financial crisis. The government has accused the banks of misleading investors about the quality of their loans.
Software company says it warned Tesla
DETROIT >> The company that made the camera and computer system for Tesla Motors’ semiautonomous autopilot says the electric car maker ignored its warnings of safety problems.
Mobileye said Friday that it warned Tesla, prior to the release of its autopilot system, not to allow drivers to use it without their hands on the steering wheel. The system Tesla rolled out in the fall allows drivers to remove their hands, while the car takes control.
Mobileye’s statement escalates a public spat with Tesla and will almost certainly draw the interest of two federal agencies investigating the death of a driver while using autopilot in a May crash in Florida. At issue is whether Tesla rolled out the system before it was ready.
J&J to buy Abbott’s vision unit for $4.3B
NEW YORK >> Johnson & Johnson says it is paying more than $4.3 billion in cash to buy the eye health unit of Abbott Laboratories to boost its vision business.
The unit, called Abbott Medical Optics, makes lasers and other equipment used for cataract surgery and laser vision correction procedures. It also makes eye drops and contact lens cleaners.
Johnson & Johnson says the purchase will enter it into the cataracts surgery market. The New Brunswick, N.J., company says the deal will also help its vision business, which includes Acuvue contact lenses.
Consumer prices rose 0.2% in August
WASHINGTON >> U.S. consumer prices edged up 0.2 percent in August as a surge in medical care offset flat readings for food and energy.
Core inflation, which excludes the volatile categories of food and energy, rose 0.3 percent, the Labor Department reported Friday. It was the biggest monthly increase since February. The climb in core inflation was led by a record jump in drug prices and the biggest rise in doctor and hospital charges in a quarter-century.
Over the past 12 months, core inflation is up 2.3 percent but overall inflation has risen a more moderate 1.1 percent, still well below the Federal Reserve’s 2 percent target for annual increases in inflation.
Media sue FBI over iPhone hacking tool
WASHINGTON >> The Associated Press and two other news organizations sued the FBI on Friday to learn who the government paid and how much it spent to hack into an iPhone in its investigation of last year’s San Bernardino, Calif., shooting.
The lawsuit seeks records about the FBI’s contract with an unidentified vendor who provided a tool to unlock the phone used by Syed Rizwan Farook, who with his wife killed 14 people at a holiday gathering of county workers in December 2015.
The mysterious transaction cut short a legal dispute in which the government sought to force Apple Inc. to unlock the phone. A debate ensued about the proper balance between electronic privacy and national security.
Chipotle exec working after drug charges
NEW YORK >> Chipotle says its top marketing executive is back on the job after he was placed on leave this summer due to drug possession charges.
Mark Crumpacker is Chipotle’s chief creative and development officer and had been in charge of the company’s efforts to win back customers after an E. coli outbreak sent sales plunging.
Chipotle Mexican Grill Inc. placed Crumpacker on leave in June after a news report said he was one of the customers named in a New York cocaine ring indictment. The 53-year-old executive turned himself in to face
On the Move
Island Air has announced the following:
>> David Lindskoog has been hired as senior vice president of operations. He has 35 years of airline operations experience, including serving on the management teams of North American Airlines, Copa Airlines and ATA Airlines.
>> William “Dee” Airman has been promoted to vice president of administra- tion, safety and security. He has 30 years of aviation leadership and safety and security management experience, including serving at Northwestern Airlines and Porter Airlines.
>> George Nichols has been promoted to vice president of information technology. He was previously the airline’s IT director since May 2015. Nichols has 26 years’ experience in IT and project management, including working as a principal project manager for American Airlines.