Chicago Tribune from Chicago, Illinois • Page 1-10

10 Chicago Tribune Section 1 Saturday, January 10, 2015 (Chicago tribune BUSINESS December jobs count up but wages drop have surged, in part boosted by the plunge in oil prices. The December job gains, while preliminary, came amid a shaky global economy in which Europe and Japan remain stagnant while China and other large developing nations are showing slowing growth. With last month's hiring, the U.S. added a net 2.95 million jobs for all of last year. That compares with 2.1 million to 2.3 million in each of the prior three years.

Last year marked the strongest job growth since the economy added 3.2 million jobs in 1999. dleetribune.com ging since the recovery, which many have taken as an indication that there is still considerable "slack" in the economy that is, a lot of available and hirable unemployed workers. Besides the lagging growth in earnings, other data such as figures indicating a high share of long-term unemployed and workers stuck in part-time jobs, plus a relatively low voluntary quit rate of employees, suggest that the job market is weaker than the unemployment rate trends might indicate. At the same time, layoffs have receded to pre-reces-sion lows, and consumer and business confidence Jobless rate at 5.6; 252,000 positions added By Don Lee Tribune Washington Bureau WASHINGTON Ignoring the economic troubles in the rest of the world, the U.S. added another large batch of new jobs in December to conclude its best year of hiring since 1999.

The Labor Department said Friday that employers took on 252,000 net new workers last month, after adding an upwardly revised 353,000 people to their pay rolls in November. The nation's unemployment rate fell by a larger-than-expected 0.2 percentage point to 5.6 percent in December, but that was partly because the labor force shrank last month. Still, the latest jobless figure is the lowest since June 2008 and is down from 6.7 percent a year earlier. Friday's report, however, did not bring encouraging news on ordinary workers' pay. Average hourly earnings for all private-sector workers fell 5 cents to $24.57, almost completely reversing the 6-cent gain in November that had raised hopes of a long-anticipated rise in pay.

Average hourly wages have hardly budged in recent years; last month's pay was up 1.7 percent from a year earlier, a tad above the inflation rate. Even so, job growth more recently has included additional higher-paying jobs. Last month, employment gains were led by professional services, which include architects and computer programmers. There were strong gains in construction, which also pays more than average, followed by food services. Businesses in health care and manufacturing also beefed up their payrolls.

If the latest job trends continue for another month or two, it could prompt the Federal Reserve to move up the timing of an increase in its benchmark interest rate, which has been pinned near zero since December 2008 to boost economic growth through the recession and recovery. Wall Street is generally expecting the central bank to begin lifting its so-called federal funds rate, which influences mortgages and other borrowing costs, at its June meeting, but some Fed officials and analysts have argued for an earlier rate increase. That decision will hinge in good part on the Fed policy committee's assessment of the job market. Wage growth has been lag HomeMade Pizza files for Chapter 7 Tom Gramatis and his PHIL VELASQUEZCHICAGO TRIBUNE the rooftop business, said partner Max Waisvisz. By Robert Channick Tribune reporter HomeMade Pizza, the Chicago-based chain offering ready-to-bake pizzas, is officially done.

The privately held company has filed for Chapter 7 bankruptcy after shutting down some two dozen stores in May. The Dec. 3 filing in U.S. Bankruptcy Court in Chicago lists less than $50,000 in assets and more than $10 million in liabilities. The largest secured creditor is HMP, a company controlled by Matthew Pritzker, which is owed $5.1 million, according to the filing.

Efforts to reach Pritzker were unsuccessful. GPB Recovery Capital of Chicago has a $1.8 million claim against the company, while Cleveland-based MHM is owed about $1.1 million. Gary and Mary West of Evanston each have claims of $859,000. Efforts to reach an attorney for HomeMade Pizza were unsuccessful. The privately held chain was founded in 1997 by brothers-in-law Eric Fosse and Matthew Weinstein, who are no longer affiliated with the company.

HomeMade Pizza offered ready-to-bake pizzas Rooftop owner, bank settle made with local, fresh ingredients. Falling somewhere between pizza restaurants and grocery stores, the concept ultimately didn't pan out. Rick Spicher, a former executive with a Milwaukee-based Pizza Hut franchisee, was chief operating officer for HomeMade Pizza during its last 18 months of operation. He said the chain, which had reached into Minnesota and New York, had 19 locations in the Chicago area and five in Washington when it closed May 30, surprising customers and store managers alike. "It was extremely popular with our fan base," Spicher said.

"We just didn't have enough volume coming in." While he understands the business reasons behind the decision, Spicher, who now works for a large New Jersey-based Pizza Hut franchisee, said he was disappointed that HomeMade Pizza closed without telling customers. "It was like we deserted them," Spicher said. The bankruptcy filing was first reported by Crain's Chicago Business. rchannicktribpub.com Twitter RobertChannick next week. In a new interview, the movie studio's chief executive, Michael Lynton, compared the hacking against Sony Pictures to burning down the company.

He revealed that the studio's network was still down more than six weeks later and was expected to remain that way for weeks longer. Deal may help facilitate a sale of businesses By Jared S. Hopkins Tribune reporter Fifth Third Bank and a Wrigley rooftop owner reached a settlement of the bank's November complaint alleging the owner's business owed over $18 million on mortgages and had missed payments, according to papers filed Friday in federal court The bank is asking a judge to dismiss all financial claims against Tom Gramatis, the majority owner of rooftop operations at 3617, 3619 and 3637 N.Sheffield Ave. The proceeding likely pushes forward the prospect of those rooftops being sold, either through a foreclosure proceeding or to another investor. The properties are not currently in foreclosure.

Reached for comment, feuding with the team, fueled by the start of the Cubs' $375 million overhaul of the historic stadium. The Cubs plan to install two video scoreboards and four advertising signs in the outfield as part of the upgrades. Many of the 16 rooftop clubs say the signs will put them out of business, but their threats to sue the team have so far been empty. They have accused the team of unfair negotiating tactics, including rearranging the location of the outfield signs to block views of rooftops that won't sell their businesses to the Cubs. A handful of owners remain in negotiations to sell to the team.

The fate of some could change in coming days. George Loukas, who owns three rooftop clubs and has acknowledged that the Cubs hold the stronger negotiating hand, said Friday he was still in talks about a sale. "We're still negotiating. TERRENCE ANTONIO JAMESCHICAGO TRIBUNE HomeMade Pizza had 19 Chicago-area locations when the chain closed May 30. It filed for bankruptcy in December.

have long wanted out of Gramatis' attorney Robert T. Hanlon said, "Mr. Gramatis has fully performed his obligations." He declined further comment. Steve Levy, an attorney for the bank, declined to comment. Friday's proceeding does not name Gramatis' business partners, Max Waisvisz and Dan Finkel.

Waisvisz said claims will eventually be dismissed against him and Finkel. "We're just doing it step by step," said Waisvisz, who owns Gold Coast Tickets. He previously said he and his partners have long wanted to exit the messy world of Wrigley rooftops and he had been negotiating with potential buyers. He also said rooftop business was slow and that Fifth Third had pulled a $1.4 million line of credit he relied on to conduct business in the offseason. Finkel could not be reached for comment Friday's court action comes as rooftops continue STAN HONDAGETTY-AFP funds that sued over the securities said in a court filing Thursday that the "settlement in principle" isn't final and the parties plan to seek preliminary approval by Feb.

2. The pension funds sued in September 2008 in Manhattan federal court over the mortgage-backed securities. Bear Stearns issued in the securities in 2006 and 2007. We should know something in the near future," he said. The rooftops and Cubs are in the middle of a 20-year deal signed in 2004 that requires the rooftop clubs to hand over 17 percent of their revenues to the team.

In recent years, the Cubs' share of rooftop revenue has been $3 million to $4 million annually. A handful of rooftop owners sued the city of Chicago and the Commission on Chicago Landmarks in August, arguing that proposed outfield signs would violate an ordinance protecting Wrigley Field's historic features. They filed an amended complaint Thursday, including allegations against the team of strong-arming the rooftop clubs in negotiations, echoing concerns that were made by their attorney during a December commission meeting. jahopkinstribpub.com Twitter jaredshopkins mortgage lenders by the federal government. The insurance rates on that loan product, which range from 0.45 percent to 0.95 percent of the loan balance, remain the same.

The lower insurance rates will take effect Jan. 26. The agency said it will temporarily allow FHA purchase loan and refinancing applications now in process and that have a case number but have not closed to be canceled. Then, borrowers can restart the process and get new case numbers on or after Jan. 26.

Borrowers are encouraged to contact their lenders and explore their options, the FHA said. Mary Ellen Podmolik FHA mortgage insurance rate cuts in effect Jan. 26 Business briefings Tribune Newspapers and news services U.S. officials deny N. Korea hack WASHINGTON The U.S.

government was not responsible for crippling North Korea's Internet infrastructure after President Barack Obama blamed the country for hacking Sony Pictures Entertainment, two senior U.S. officials told The Associated Press, as Congress announced Friday it will examine North Korea's cyberthreats starting The Federal Housing Administration on Friday spelled out details of its plan to lower mortgage insurance premiums, a day after President Barack Obama unveiled the effort to jump-start first-time home purchases. For 30-year mortgages with less than a 5 percent down payment, the mandatory annual mortgage insurance rate of 1.35 percent of the loan balance will be cut to 0.85 percent For FHA-insured loans with more than a 5 percent down payment, the previous 1.30 percent rate will be reduced to 0.80 percent. But the reduced rates will not apply to borrowers with 15-year mortgages, according to a letter issued to JPMorgan has reached a "settlement in principle" to resolve a lawsuit over mortgage-backed securities. JPMorgan to pay $500M in suit THE BOTTOM LINE The Federal Reserve said it paid the federal government a record $98.7 billion in 2014, a payment that reflects the central bank's earnings from holdings of Treasury bonds and mortgage-backed securities purchased to keep long-term interest rates low to boost the economy.

The Fed said that the 2014 payment was up 24 percent from a 2013 payment of $79.6 billion and is higher than the previous record of $88.4 billion paid in 2012. NEW YORK -JPMorgan Chase reached a preliminary setdement to pay $500 million to resolve a lawsuit over $17.6 billion of faulty mortgage-backed securities issued by Bear Stearns, according to a person familiar with the agreement who asked not to be named because the information is not yet public. A group of pension CONTACT US Mike Kellams, Associate Managing EditorBusiness 435 N. Michigan Chicago, IL 60611 businesstribpub.com.