Thursday morning headlines

B of A sticks with Countrywide: A number of Bank of America shareholders put up a stink at the shareholders meeting about buying the mortgage giant for $4 billion (keep in mind that the bank just reported a 77 percent drop in first-quarter profit). But CEO Ken Lewis said that Bank of America paid a fair price for Countrywide and continues to perform deep due-diligence. The Calabasas-based lender lost about $1.6 billion in the last six months of 2007 and it's in the midst of enough litigation to keep its lawyers working until, say, 2043. Not to worry, says Lewis – B of A is in this for the long term. (AP)

Speaking of lawyers: Nearly as many subprime-related federal lawsuits were filed in the first quarter as in the last six months of 2007 (that doesn’t include claims filed in state courts). The numbers are likely to keep going up, according to research firm Navigant. Nearly half of the cases filed in the quarter were class action suits on behalf of borrowers. Another 26 percent are securities suits. From DealBook:

It is early to make predictions about how the cases will play out. The report notes that few motions to dismiss have been reviewed by a judge, so the strength of claims is hard to evaluate thus far. And many of the class action suits have not been certified by a judge. Because some of the cases involve relatively novel claims, courts may be reluctant to reject them without some study, lawyers say. Unfortunately for litigants, staffing of federal courts typically does not fluctuate with volume, and the rising caseload means that legal proceedings are likely to drag on for years.

Northrop takes hit: The L.A.-based defense contractor this morning reported a 32-percent drop in first-quarter earnings (though better than analysts estimates). As expected, delays in completing in amphibious assault ship have taken a toll. Northrop will deliver the ship in the second quarter of 2009 instead of the end of this year. (AP)

Wendy's sold to investor: The fast-food chain is being bought by Triarc Companies, whose chairman, Nelson Peltz, has been after Wendy's to make some big-time changes. The deal calls for a stock swap valued at $2.3 billion. Triarc is also an Arby's franchisor. (Bloomberg)

East West beefs up liquidity: After reporting an 88 percent drop in first-quarter earnings, the Pasadena-based bank says it will offer $150 million in convertible preferred stock. That brings in money while offering investors a hefty 8 percent dividend. East West, which targets the Chinese-American community, hasn’t had subprime-type problems, but did take charge offs on some commercial loans. (LABJ)

Pellicano won't tetify: After a dull day of testimony wrapped up, he told the court that "Mr. Pellicano" would not take the stand, presumably to protect his former clients. (Since he's defending himself, Pellicano must refer to himself in the third person, making for some pretty silly give-and-take). From Allison Hope Weiner in the Huffington Post:

As the judge struggled not to laugh at his repeated use of Mr. Pellicano, Mr. Pellicano attempted to continue his carefully prepared soliloquy, admonishing the judge with a surly "May I finish?" It seems at this point that Mr. Pellicano the lawyer has decided that he doesn't care what happens to Mr. Pellicano the client. Rather, he seemed just incredibly committed to getting a bunch of self-serving, incredibly ironic statements on the record.

[CUT]

As the judge looked on with almost stunned amusement, Mr. Pellicano explained his client's position. "Mr. Pellicano's intention would be to describe what he did and that's that." Mr. Pellicano's client would refuse to answer any questions about his clients because of the attorney-client and the newly invented Pellicano investigator-client privilege and he also will not answer any questions about his co-defendants. And, apparently, that's that.

Calpers official resigns: As chief investment officer, Russell Read has been a big player for the California Public Employees' Retirement System. He led the pension fund through all the booms in commodities, private equity and real estate, and also oversaw investments into emerging markets such as China and Russia. Read says he's leaving to invest in companies that are developing environmentally friendly technologies. "What I didn't anticipate two years ago is how quickly that sector would take off," he told Bloomberg. "So there are investment reasons and personal and environmental reasons why this is important to me.''

Dodger to expand stadium: They're taking the area behind the outfield and turning it into a kind of Dodgers mall, with shops, restaurants, a Dodgers museum and two parking garages. The project, which appears to have clearance from the city, will cost $500 million. It's scheduled for completion in 2012. From the LAT:

City Councilman Ed Reyes, whose district includes Dodger Stadium, said the project would surround the ballpark with a ring of greenery, with parks and plazas "almost like a campus setting," so fans could walk from a garage onto a tree-lined walkway leading to an entrance, or to the retail cluster. "They are not just dropping a box in a middle of a parking lot," Reyes said.

Defending Grand Avenue plan: Specifically the $65.5 million in tax breaks for the project, just as the city grapples with its largest budget shortfall in history - a shortfall that will result in all kinds of reduced services. But city officials are banking on upwards of $230 million a year in property and utility users taxes once a luxury hotel is built. There's also revenue from sales taxes. Meanwhile, the developer has given the county $50 million for construction of the park, but more money may be needed (what a surprise!!!). (Daily News)

Latest economic indicator: The number of Lasik surgeries has been falling. One research house forecasts an 18 percent drop in 2008 (these procedures are typically not covered by insurance). Besides the economy, there have been a small but growing number of complaints about the results of Lasik procedures. (NYT)