Northeast Bancorp offering stock to boost bank’s capital

Northeast Bancorp, the parent of Northeast Bank, said it launched a public offering of 4.76 million shares of its common stock.

The Lewiston-based company, which operates 10 banking branches, plans to use the net proceeds of the offering to contribute to the capital of the bank, including strengthening the balance sheet to allow for loan purchases, loan growth and investment in securities.

Northeast said a selling shareholder is offering an additional 149,954 shares of common stock. Northeast plans to grant the underwriter an option to purchase up to an additional 15 percent of the common stock sold to cover any over-allotments.

Earlier this week, Northeast posted third-quarter earnings of $168,000, 2 cents a share.

Mixed economic signals blamed for drop in indexes

Wall Street gnawed on a muddle of economic data and corporate earnings news Thursday, then sent stock indexes lower for a second day.

Disappointing April sales results from big retailers set the bleak tone early on. Costco, Macy’s and Target, among others, reported sales that were weaker than analysts had predicted. Colder weather and renewed concerns about the economy weighed on shoppers.

Fears of a global financial freeze-up caused by the European debt crisis have receded, but many now worry that Europe’s recession will hurt sales by American exporters such as GM and Caterpillar. Caterpillar lost 1.9 percent

Wall Street’s ‘bad boy’ gets 12 years for investor fraud

A former investment manager known as Wall Street’s “bad boy” has been sentenced to 12 years in prison.

Ross Mandell was sentenced in New York on Thursday for his conviction on charges he defrauded U.S. and European investors of $140 million.

He was convicted last summer on conspiracy and securities fraud charges. The Brooklyn-born Mandell was the former chief executive officer of Sky Capital. The firm had offices in London, New York, Florida and New Jersey.

His lawyer says he’ll appeal. The trial captured the hard-partying lifestyle brokers enjoyed during the dot-com boom of the late 1990s and early 2000s. Prosecutors say Mandell treated his brokers to fast times in London, spending $1.3 million at the nicest hotels in Europe and bringing plenty of petty cash for strip clubs and prostitutes.

GM’s low world earnings drag down North American profit

Strong sales in North America and China are generating big profits for General Motors. Now the company needs the rest of the world to play along.

GM’s net income totaled $1 billion in the first quarter as it sold more vehicles at higher prices in the U.S. But the earnings fell 69 percent from a year earlier. The reasons: Big one-time charges and high operating costs in Europe, and lackluster earnings in South America.

For GM to continue its rebound from bankruptcy three years ago, it needs Europe and South America to improve, especially if North American sales slow.

— From news service reports