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Priority Bank is 8th U.S. bank to fail

BRADENTON, Fla., Aug. 2 (UPI) -- Assets of First Priority Bank, the eighth U.S. bank to fail this year, have been transferred to other institutions, federal authorities say.

The Federal Deposit Insurance Corp. said Friday that $42 million of assets held by the failed First Priority, of Bradenton, Fla., have been purchased and assumed by SunTrust Banks Inc., the Wall Street Journal reported.

The FDIC also told reporters it had reached a deal with a unit of Beal Bank Nevada to purchase an additional $14 million in First Priority's assets.

First Priority had total assets of $259 million as of June 30, with total deposits of $227 million and $13 million in uninsured deposits, possibly exceeding the FDIC's limit for such deposits.

The bank had lost $15.5 million so far this year, the Journal said.

"This was a dead bank walking," Miami banking consultant Ken Thomas told the newspaper, adding that he expects to see more failures along Florida's west coast, where start-up banks emerged while cashing in on the state's residential building boom.

Verizon, IBEW negotiate Mass. contract

BOSTON, Aug. 2 (UPI) -- Telecom giant Verizon says it expects to reach a settlement with union workers in Massachusetts and Rhode Island Saturday and avert a possible strike.

The workers' contract expires a 11:59 p.m. Saturday, and company officials are optimistic a deal can be reached, the Boston Herald reported.

"We are expecting a settlement," Verizon spokesman Phil Santoro told the newspaper.

Workers, however, were not so sure an agreement could be reached Saturday. International Brotherhood of Electrical Workers spokesman Paul Feeney said the two sides are "so far apart on so many issues, we may run out of time."

A strike is "still an option," he told the Herald, adding, however, that it may be possible to extend the negotiations deadline, much like the two sides did five years ago when the last contract expired.

KBR employees told to turn in cell phones

BAGHDAD, Aug. 2 (UPI) -- U.S. Defense Department contractor KBR says it has ordered its employees in Iraq to turn in their personal cell phones for security reasons.

The military services contractor, based in Houston, did not explain what security issues may be involved, CNN reported Saturday.

"The matter giving rise to this message is still being reviewed by KBR management, so the company will not provide further comment at this time," the company said in a statement.

CNN said it had obtained a KBR company e-mail ordering employees in Afghanistan and Kuwait as well as in Iraq to hand over all personal cell phones to company officials.

Saudi palaces eyed for tourist hotels

RIYADH, Saudi Arabia, Aug. 2 (UPI) -- Saudi Arabian tourism officials say they're considering turning some of the country's traditional palaces and buildings into luxury hotels.

Officials of the Saudi Commission on Tourism and Antiquities, including Deputy Secretary General for Investment Salah Al-Bukayyet, returned this week from visits to such "traditional hotels" in Spain and Portugal and say it could be done in Saudi Arabia as well, the Saudi Gazette reported.

Al-Bukayyet said his team's visits to the Baradors Hotels in Spain and Bosadas in Portugal showed the potential for turning archeologically preserved palaces and former royal buildings into destination tourism attractions.

The Gazette said the SCTA's visit lasted six days as Saudi officials met with Spanish and Portuguese tourism leaders and traditional hotel operators.

If such conversions were to happen in Saudi Arabia, it would be accomplished by a private sector-government partnership, the newspaper said.