The Atlanta Constitution from Atlanta, Georgia • C1

Filename: C1-BUSINE-AJCD1018-AJCD created: Oct 17 2008 Username: SPEED7 Saturday, Oct 18, 2008 BUSINESS 1 AJCD 1 Cyan Magenta Yellow Black 1 Cyan Magenta Yellow Black AJCD File name: C1-BUSINE-AJCD1018-AJCD created: Oct 17 2008 Username: SPEED7 BUSINESS Saturday On ajc.com/business: Check out our continuing coverage of the mortgage crisis and credit crunch. Buffett great at giving Billionaire leads Conde Nast Portfolio He also thinks a great time to buy stocks. C3 INSIDE Business Dow Jones 8,852.22 Nasdaq 1,711.29 500 940.55 10-year T-bond 3.92% Investing report, C4 MARKET SATURDAY, OCT. 18, 2008 Newsroom Customer Care 404-526-7003 Local banks see condence revival By KEVIN DUFFY The federal rescue of banks is helping restore depositor in dozens of community banks, but not a for the bad- loan problems. The biggest for community banks is that the FDIC will now insure non interest bearing checking accounts no matter how large, said Joe Brannen, president of the Georgia Bankers Association.

With that guarantee in place, experts said, small businesses need not worry about spreading their money among several banks or shifting their funds to one big bank. just a general calming effect in the whole small-business Brannen said. levels the playing added Cornerstone Bank CEO Chris Burnett, if a business owner is concerned about banking with a small bank, he now have that Georgia has more than 300 community banks. Many freely made loans to local home builders and developers before the housing market collapsed, and now stuck with so-called toxic assets. what is hurting community Brannen said.

The federal government has given itself permission to buy bad mortgages and inject capital into banks, but too early to tell what effect those measures will have on small banks. a lot of interest in at least investigating the asset-purchase said Steve Bridges, president and CEO of the Community Bankers Association of Georgia. If the government buys mortgages, that a and competition for private-sector and should help rejuvenate the market, said Tom Bryan, president and CEO of Atlanta-based Silverton Bank, a correspondent bank that facilitates bank-to-bank lending. But how aggressive the government will be in buying mortgages is unknown after the Bush administration introduced a new measure this week purchasing shares in banks. Brannen said the majority of community banks are well-capitalized, debt lands on others By MARGARET NEWKIRK When gas marketer Catalyst Energy for Chapter 11 bankruptcy this month, it owed $5 million to the gas system.

Now other natural gas retailers are on the hook for it, in a twist that has some of them demanding an overhaul of state gas market rules. They say the debt left by Catalyst exposes a in the way Atlanta Gas Light orders marketers to buy gas. That forces some marketers to effectively front interest-free operating funds to others. And the rules provide any way to reimburse them if the debtor defaults. Competitors such as Gas South and Walton EMC Natural Gas are now holding the bag for a big chunk of the $5 million Catalyst debt.

Between them, they paid for at least $2 million of the gas Catalyst sold over the past months, the two companies said this week. not happy. just say, well, the Walton representative Jim Bottone told state utility regulators this week. was never part of the deal. completely He said Walton, which is one of the more affordable marketers, certainly if exposed to that kind of risk.

would bury he said. Gas South attorney Mark Baxter said the issue could grow beyond the debt is dumping into other Other marketers likely also owe the system. In the current economic climate, he said, others may also end up in bankruptcy court. Marketers will meet with the state Public Service Commission next week to hash out the mess. Georgia marketers themselves helped develop the rules governing the gas market.

UPS ground, air rates to climb Jan. 5 By RACHEL TOBIN RAMOS For already struggling retailers and consumers, shipping rates will go up again in 2009. Sandy Springs-based UPS announced rates will rise an average of 5.9 percent starting Jan. 5 on ground packages and 4.9 percent on air express shipments. (Rates went up at the beginning of 2008 by an average of 4.9 percent.) The main U.S.

rival, Memphis-based FedEx, announced rates will increase an average of 6.9 percent. Belgium-based DHL has yet to release new rates. Basic shipping rates get adjusted every year based on labor, maintenance, fuel and other costs, said Karen Cole, a UPS spokeswoman. The rates are separate from fuel surcharges that get adjusted every month and a half based on diesel and jet fuel prices, she said. fuel bill last quarter topped $1 billion.

Customers have been downgrading from premium air to cheaper ground service as the economy has contracted, UPS has said. CEO Scott Davis said in September that an Though ground shipments have, the company has more invested capital in air. Under purchasing formula money owed to natural gas system by bankrupt marketer must be paid by its competitors. Please see GAS, 5 Please see BANKS, C5 Rescue cools concerns, but bad loans remain Stocks end lower after relative calm ASSOCIATED PRESS New York Wall Street ended a tumultuous two- week run relatively quietly Friday, another back-and-forth session moderately lower as investors were cheered by signs of easing in the credit markets and managed to absorb lackluster economic news with equanimity. The expiration of options contracts helped tug the market in different directions throughout the session.

Still, the Dow Jones industrial average traded within a narrower range than it had in much of the past two weeks. The Dow ended down 127 but big rallies on Monday and Thursday gave the blue chips an advance of 4.8 percent for the week the best gain since March 2003. The market spent the half of the session vacillating, moving between gains and losses after the government said new home construction dropped by more than expected last month to the lowest pace since early 1991. But mood seemed to pick up later in the session as lending rates for bank-to-bank loans eased, indicating some bank fears about not being repaid by borrowers is easing. Demand for safe-haven investments such as Treasury bills also decreased.

The hour of trading again proved pivotal as in much of October; stocks as investors squared away positions for the week. Given the magnitude of most of the recent sessions in October, the moderate declines Friday seemed barely noteworthy. And advancing issues outnumbered decliners by about 3 to 2 on the New York Stock Exchange, where volume came to 1.74 billion shares. The loosening of credit markets appeared to draw most of attention. The London inter Please see STOCKS, 5 Following 2 weeks of turmoil, investors take housing news in stride and respond to signs that banks are easing the grip on credit.

new dance Kroger features fresh fare By RACHEL TOBIN RAMOS Temperature controlled wines for $1,184.99, exotic fruits like hand a dry-aged beef cooler, and foodie-quality olive oil for $15.69 are the new staples at the Kroger in Buckhead, known affectionately as the And though the disco ball still hangs in a place of distinction at the front entrance it the same old disco Kroger. Cincinnati-based Kroger Co. has spent $5.5 million transforming the store at 3330 Piedmont Road into a concept only the nationwide and the in Georgia. It will be open to the public on Sunday. Fresh focus is organic and freshly prepared foods.

About 10,000 square feet, or nearly of the store, is dedicated to sushi chefs, chef-made entrees, imported cheeses, olives and fresh breads. And wine is a major focus of the store. More than 4,400 wines take up the center of the store including a temperature-controlled room for the top vintages. you walk into the store, you get that said store manager Stephen Leonard. Bill Harris, the wine steward, can explain (in terms) why wine oxidizes and why that bottle of Semillon has such a yellowish color.

He said his goal to have the largest and best wine selection in Atlanta. Meanwhile, Chef Howard Warren is creating menus for the hot bar, including his favorite, garden tilapia. He has more than a dozen sous chefs and line cooks. But be fooled. Even though there are nearly no signs in the store Thousands of wines are in the center of the store.

Wine steward Bill Harris hopes to have the largest selection in Atlanta. Fresh-cut will also be available at the store. Photos by LOUIE FAVORITE Executive chef Howard Warren and workers prepare for the grand opening as a store. The store at 3330 Piedmont Road in Buckhead features a disco ball. FIVE CHANGES TO THE DISCO KROGER More wine, like a $1,184.99 magnum of Chateau 1995 vintage Sauternes.

Kept at the requisite 58 degrees. Thirty-two feet of cooler space dedicated to yogurts and juices (each) and a 28-foot cooler for waters and energy drinks (bye-bye Bumble and Bumble brand shampoos and conditioners, starting at $15.19. Two cashiers near the hot bar, called The Bistro, for the lunch rush. A large array of fresh- cut and a arranger to help make bouquets. Please see DISCO, 5.