Fed fines SunTrust Bank $1.5 mln for violating Flood Insurance Act
WASHINGTON, May 25 The Federal Reserve has fined SunTrust Bank $1.5 million for violations of the National Flood Insurance Act, the central bank said on Thursday.
Shares of several Boeing Co (BA.N) suppliers recovered from sharp losses on Friday afternoon as there was little to suggest a link between a fire aboard a 787 Dreamliner aircraft in London and recent battery mishaps that grounded the planes.
Stocks of suppliers such as Spirit Aerosystems Holdings Inc (SPR.N), Precision Castparts Corp PCP.N and Parker Hannifin Corp (PH.N) fell after a vacant Ethiopian Airlines 787 parked at the Heathrow airport caught fire on Friday.
"We're jumping to conclusions on what this is and how material the issue may be," said Longbow Research analyst Eli Lustgarten.
The Dreamliner was grounded by regulators for more than three months, starting January, after batteries overheated on two of the jets within two weeks.
The jet's battery compartments are low down, according to public Boeing diagrams, while the visible damage to the Ethiopian plane on Friday appeared to be higher up and further towards the rear.
Lustgarten, who covers fuel systems maker Parker Hannifin, said the impact on the company from the fire would not be enormous.
Parker Hannifin does not break up how much the aircraft maker contributes to its revenue, but said in its annual report last August that no single customer accounted for more than 3 percent of its total sales for the year ended June 30, 2012.
The company's shares closed down 0.8 percent at $99.12, recovering from a low of $98.65.
Spirit Aerosystems, the largest supplier of aerostructures to the Dreamliner, closed down 2.2 percent at $22.61, after earlier dropping as much as 4.7 percent.
"Today's incident has no impact on Spirit Aerosystems," the company's spokesman Jarrod Bartlett said.
Metal components manufacturer Precision Castparts, a primary supplier to Boeing, fell as much as 6.4 percent, before closing down 1 percent at $234.63.
Precision Castparts' spokesman Jay Khetani declined to comment.
Other companies were barely affected. Shares of Honeywell International (HON.N) and Rockwell Collins (COL.N), among the largest companies that supply parts for the Dreamliner, fell only marginally.
(Reporting by Rodrigo Campos and Chuck Mikolajczak in New York and Sagarika Jaisinghani, Rohit Tirumala Kumara and Ritika Rai in Bangalore; Editing by Bernadette Baum and Joyjeet Das)
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