Central Pacific Profits, Societe Generale and Coffee News

Written by Howard Dicus - hdicus@kgmb9.com

January 31, 2008 12:36 PM

Part I:

New this morning: Central Pacific Financial Corporation saw its fourth quarter profit shrink from almost 19 million in 2006 to less than 4 million in 2007. And it might later revise the numbers. Later in this half hour I'll be back to explain why.

The trader who cost Societe Generale billions of dollars says the bank had to know what he was doing, and the president of France has called for removal of the bank's CEO. But the Societe Generale board has asked the CEO to stay on. There are reports in Paris, meanwhile, of a takeover attempt by the only larger bank in France, BNP Paribas. That company owns First Hawaiian Bank.

Big Island coffee consultant Andrew Hetzel has become Hawaii's first certified coffee cupping judge and instructor. The Speciality Coffee Association certifies 250 judges worldwide.

And as I mentioned last hour, Starbucks will stop selling hot breakfast sandwiches to focus on its core business, the CEO saying it was interfering with the smell of the coffee.

Part II:

Central Pacific Bank saw four fifths of its profits evaporate in the fourth quarter... Net income of less than 4 million dollars. What happened was an irony only a banker can fully appreciate. Realizing that the Hawaii economy is fragile, and sometimes slumps while things are fine on the mainland, Central Pacific made a deliberate decision to get into the lending business in California. Well, you know the rest of the story. The Hawaii economy has remained strong, cooling only a little, while the California economy has become, shall we say, subprime. Central Pacific CEO Clint Arnoldus says he still thinks in the long run the diversification will prove to be a good idea. In the meantime, not only are profits way down, but Arnoldus has called in some auditors to look at the mainland numbers and see if goodwill value should be recalculated in light of all the financial market turbulence.

Last Updated ( January 31, 2008 12:36 PM )

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