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Food prices shot higher across the country last year, but one grocery list mainstay could see a little relief in 2008.

The U.S. Department of Agriculture is predicting that milk prices won't come close to the 12 percent surge in 2007. A 1.1 percent increase in the cow population and 1.7 percent growth in the average output per cow are expected to help keep wholesale prices under control this year.

The USDA expects milk production to increase 2.7 percent in 2008, faster than last year's 2.1 percent growth get a free credit report.

Milk at $4 a gallon is already a reality in some U.S. cities. But the average price nationwide is still holding under that lofty mark.

The production increase also should help moderate retail prices for other dairy products such as butter, cheese and ice cream.

For more: www.usda.gov.

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Central Pacific Financial Corp. said Monday that president and CEO Clint Arnoldus will retire at the end of the year.

The terms of Arnoldus's contract put the value of his retirement and compensation package at about $5 million, Central Pacific board chairman Ronald Migita said.

Arnoldus, 61, joined the company in 2002. Central Pacific (NYSE: CPF) said it will begin to search immediately for a new president and CEO of Hawaii's fourth largest bank.

Arnoldus told PBN that the idea to retire was his and that family considerations weighed significantly in the decision.

"It's something I broached with the board — I'm a family man and even though we love Hawaii when we're this far apart, with six kids and 14 grandchildren, if I can retire when I'm at a good point and still have a lot of options left, it made sense."

Before joining Central Pacific, he served as chairman, president and CEO of Community Bank, based in Pasadena, Calif. He has also held top executive positions at banks in Nevada and New Mexico.

Arnoldus led Central Pacific through the politically difficult acquisition of City Bank in 2004, which at the time was seen as a necessary deal to expand Central Pacific's market and tap into City Bank's lucrative home-loan business

The merger fueled impressive growth in deposits, loan and profits in 2005 and 2006, but as the real estate business softened in 2007, Central Pacific's exposure to some of City Bank's old loans to California developers weighed heavily on the bank pay day loans.

Last month, Central Pacific announced it was taking a $48 million non-cash charge, citing its declining stock price and the diminished value of its portfolio in California. The company had to restate its 2007 profits to $5.8 million to include the charge, compared to $79.2 million in 2006.

Despite the difficulties in California, Ardnoldus said no one was second-guessing the City Bank deal and said the bank's executives and the board had all agreed that the bank needed to diversify its holdings beyond Hawaii.

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KB Home, one of the largest production home builders in New Mexico, is closing its Albuquerque office and will no longer build in the state, the company announced Friday.

KB recorded losses of $772.7 million in the fourth quarter of 2007 ending Nov. 30. The Los Angeles-based company's home sales for fiscal year 2007 were down 26 percent, with revenues of $6.42 billion, down 32 percent from 2006.

Last year, KB and several other production home builders in central New Mexico announced employee layoffs after new home sales starting slipping downward no fax payday advances.

The company also plans to cease operations in Chicago and the mid-Atlantic.

It will finish current projects in Albuquerque, and said it will continue to service warranties on existing homes.

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Fidelity Investments said on Wednesday it agreed to pay an $8 million penalty after the Securities and Exchange Commission accused the mutual fund giant’s employees, including former star Magellan fund manager Peter Lynch, of taking jet trips and sporting event tickets from outside brokers vying for business.

“The broker selection process on Fidelity’s equity trading desk was compromised when gifts and lavish entertainment swayed the flow of brokerage business,” said Walter Ricciardi, an SEC official.

Lynch, a Fidelity icon and vice chairman, got numerous tickets to concerts, theater and sporting events paid for by outside brokers through his requests to two traders on Fidelity’s equity trading desk.

In all, the SEC accused Fidelity and 13 current and former employees of accepting more than $1.6 million in gifts from outside brokers. Outside brokers are keen to court Fidelity because of its massive trading volume on the behalf of its mutual funds.

Fidelity did not admit or deny any wrongdoing as part of the civil settlement.

The SEC’s order against Lynch required him to pay $15,948 for his gifts and $4,183 in pre-judgment interest payday advance. Lynch also did not admit or deny any wrongdoing.

Bart Grenier, a Fidelity senior vice who supervised the equity trading desk, is accused of accepting $38,500 worth of tickets from brokers to 21 concerts and sporting events. He did not admit or deny any wrongdoing.

Fidelity employees got private jet trips to Bermuda, tickets to the Super Bowl and the Ryder Cup golf tournament, for example.

The mutual fund said in a statement the SEC settlement concludes regulatory investigations into events that took place more than three years ago.

Since then, Fidelity said it has taken actions to prevent the misconduct from happening again. Individuals involved have been disciplined by Fidelity, the company said.

None of the individuals cited by the SEC remain on the trading desk and most are no longer with the company, Fidelity said.

In 2006, Fidelity paid $42 million to its funds and an additional payment to other accounts Fidelity advises as a penalty for this same misconduct.

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Salem Communications Corp. reported a decline in revenue and net income in its fourth quarter, the company said Tuesday.

In the fourth quarter, Salem reported $59.1 million in revenue, down slightly from $59.2 million in the year-ago period. Net income was $200,000, or 1 cent a share, down from $3.3 million, or 14 cents a share, in the year-ago period.

The quarter included a $100,000 loss of the disposal of assets; a $1.9 million impairment charge; a $900,000 non-cash compensation charge; and a total of $900,000 in non-cash compensation, according to a release. The results also include the reclassification of the operations of its Milwaukee stations to discontinued operations.

For the full year period, the company reported $231.7 million in revenue, up from $225.7 million in the year-ago period. Net income was $8.2 million, or 34 cents a share, down from $19 million, or 78 cents a share, in the year-ago period same day payday loans. The current fiscal year included a $2.2 million gain primarily from the disposal of assets in Cleveland and Nashville; a $1.9 million impairment charge from discontinuing the printing of CCM Magazine; a $200,000 gain related to the disposition of assets in Milwaukee; and a $3.4 million non-cash compensation charge related to the expensing of a total of $3.4 million in non-cash compensation, according to a release.

The company currently has six pending transactions, four sales and two acquisitions, according to a release.

Camarillo-based Salem (NASDAQ: SALM) will own 96 radio stations, including 59 stations in 23 of the top 25 markets, upon the close of all announced transactions.

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The much-anticipated privatization of Grady Memorial Hospital shuffled closer to reality.

On Saturday, the Fulton-DeKalb Hospital Authority ratified a lease and financing agreement that preps the transfer of Grady’s daily operational control to a yet-to-be-formed private non-profit management corporation.

The privatization will trigger a private and public sector bailout of the hospital worth more than $200 million.

The lease agreement, however, won’t be executed — or take effect — for a while.

That’s because, for starters, the non-profit board has not yet been formed.

The hospital authority must also first get a firm written commitment for $200 million, including an initial payment of $50 million, according to the hospital authority’s attorney. And, the non-profit must commit to try and raise an additional $100 million.

The non-profit’s 16-member board — which would include five appointees of the hospital authority, at least four of whom must must from the current Grady board — is expected to be named and approved in the new few weeks cashadvance.

Candidate’s include A.D. "Pete" Correll, former chairman and CEO of Georgia-Pacific Corp.; Tom Bell, CEO of Cousins Properties Inc. (NYSE: CUZ); Michael Russell, CEO of H.J. Russell & Co.; and Duane Ackerman, former CEO of BellSouth Corp.; Beverly Hall, superintendent of Atlanta Public Schools; Dr. Louis Sullivan, former secretary of the U.S. Department of Health and Human Services; and Bill Clement, chairman and CEO of Dobbs Ram & Co.

The lease agreement, ratified Saturday, has patient care and funding provisions that state the non-profit corporation must "irrevocably, absolutely and unconditionally" provide indigent and charity care, and operate Grady as a safety net hospital. It must also consult with the hospital authority before "ceasing any major medical service line."

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