RIM writes off value of tablet inventory

RIM writes off value of tablet inventory

NEW YORK

Research In Motion Ltd., the struggling maker of the BlackBerry phones, is writing off much of its inventory of PlayBook tablets, which it has had to sell at a deep discount.

The Canadian company said Friday that it’s recording a pre-tax charge of $485 million in the just-ended quarter to account for the declining value of the tablets. The model originally priced at $500 now sells for $200, for instance.

A year ago, co-CEO Jim Balsillie said pent-up interest in the PlayBook was “really overwhelming.” Companies were looking for an equivalent of the iPad for corporate use, he said.

In March, Balsillie said, “The launch of the PlayBook may well be the most significant development for RIM since the launch of the of the first BlackBerry device back in 1999.”

But when the tablet went on sale in April, reviewers puzzled over the lack of email software, saying the device seemed half-baked. RIM now promises updated software in February.

Merkel wants treaty rewrite to fix euro

BERLIN

German Chancellor Angela Merkel pushed forward Friday with what markets see as an emerging plan for more-effective action to contain the European financial crisis, urging tougher rules against government overspending.

She said next week’s European Union summit would take up ways to enforce compliance and write those changes into EU treaties — a drawn-out process.

The push by Merkel on debt rules — a day after French President Nicolas Sarkozy made the same case — is being seen as one-half of a fresh approach by European leaders to finally get a grip on the crisis more than two years after it started in Greece.

The other half could be more short-term help for heavily indebted governments from the European Central Bank.

House panel votes to subpoena Corzine

WASHINGTON

A congressional panel has subpoenaed former New Jersey governor and U.S. Sen. Jon Corzine to testify next week about his role leading MF Global, a brokerage firm that collapsed this fall after a disastrous bet on European debt.

The hearing Thursday will be a rare moment in Washington. Congressional historians and Capitol Hill insiders can’t recall another time when a former member of Congress was summoned to testify before Congress about a matter under federal investigation.

The House Agriculture Committee voted Friday to issue the subpoena after Corzine failed to reply to an informal request to appear at the hearing.

Chairman Rep. Frank Lucas, R-Okla., said his testimony is “essential to fulfill our objectives.”

Hours later, the head of the Senate Agriculture Committee called for subpoenas to be issued to Corzine and other MF Global executives to appear by Dec. 13 at that panel, if they don’t come voluntarily.

GMAC ends most Mass. mortgages

NEW YORK

One day after it was among five major banks sued by Massachusetts over deceptive foreclosure practices, GMAC Mortgage says it will stop purchasing new mortgage loans written by third parties in the state.

The mortgage origination and servicing arm of Ally Financial Inc. says it will honor all commitments with correspondent lenders and wholesale brokers through Monday.

GMAC will continue to lend directly to homeowners in Massachusetts. Most of its business in the state is done through third parties such as community banks, which originate loans and sell them to GMAC.

From wire reports