Marka Hansen, president of Gap North America, is stepping down from her position and will leave the company effective Friday, the San Francisco company announced Tuesday.

Hansen has been with the apparel company for 24 years and most recently helped launch the brand's 1969 premium jeans concept. An internal successor will be named Wednesday, Chief Executive Glenn Murphy said in a statement.

“After several conversations, Marka and I agreed this was the right time for a change in the organization in order to take Gap brand to a new level," he said. "I am grateful for all that Marka has contributed to the company."

After starting as a Banana Republic merchant in 1987, Hansen moved to top merchandising roles at both Banana Republic and Gap, as well as in the International division when the company prepared to open in Europe and Japan. She also served as president of Banana Republic starting in 2003, before assuming the role of president of Gap North America in 2007.

In a note to investors, retail analyst Richard Jaffe said he viewed the move as a positive one and a "necessary step" in Gap's continuing effort to reinvigorate the brand.

"While Marka has had a significant positive impact ... particularly on the operational side, her efforts to reposition the merchandise assortments at Gap have not been as fruitful," Jaffe said in the note. "While the re-launch of denim (the 1969 brand) was a great success and the black pant initiative for women was well received, these were not sufficient to lift Gap’s results and fuel market-share gains."

-- Andrea Chang

Photo: Marka Hansen. Credit: Gap Inc.

American Apparel Inc., the Los Angeles maker of trendy apparel, has received a waiver to its credit agreement with Lion Capital and other lenders to help it avoid defaulting on its loan.

Under the agreement, which is in effect until Feb. 11, the struggling company does not need to maintain minimum earnings before interest, taxes and depreciation for the fiscal year ending Jan. 31, according to a regulatory filing with the Securities and Exchange Commission on Tuesday.

American Apparel also said it was hoping to obtain a permanent waiver and was negotiating "possible amendments" to its Lion credit agreement.

However, the company said it could "provide no assurance that it will be able to secure such amendments or extension, nor, if secured, the terms thereof." That could lead to a default under its Bank of America credit agreement, which could cause the manufacturer to owe Bank of America all of its debt immediately.

"The acceleration of any or all amounts due under the Lion Credit Agreement or the BofA Credit Agreement or the loss of the ability to borrow under the BofA Credit Agreement would have a material adverse impact on the Company’s operations which would result in the need for the Company to modify its current business plan and/or curtail its operations and could affect the Company’s ability to continue operations as a going concern," American Apparel said in the filing.

Last week, Los Angeles billionaire Ron Burkle cut his stake in American Apparel less than a year after buying up 6% of the company's stock.

According to a regulatory filing, Burkle sold about 1 million shares in recent weeks, reducing his stake in the company to 3.4 million shares, or about 4.3% of common stock, as of Jan. 20. Burkle, who made his fortune in the supermarket business, sold his shares at prices ranging from $1.40 to $1.65.

On Tuesday, shares of American Apparel rose 6 cents, or 5.8%, to $1.09.

-- Andrea Chang

The naked images created by airport scanners may soon be a thing of the past.

The Transportation Security Administration announced Tuesday that it was testing software that would allow airport scanners to show objects hidden under the clothes of passengers without creating what appears to be a naked digital image of the passengers.

Instead, the software being tested at airports in Las Vegas, Atlanta and Washington would create an outline of a generic person on a screen (shown at left). Using radio waves, the scanner looks through a passenger's clothing and signals any anomalies that would indicate hidden weapons or contraband.

The software would be installed on the scanners that are already installed at the airports. No new equipment would be needed.

The idea is not new. TSA Administrator John Pistole told reporters last year that the agency had long been testing the software but said it had created too many false alarms during early trials. A TSA spokesman said Tuesday that some of the false-alarm problems have been resolved in government labs.

-- Hugo Martin

Photo: Image of a generic body created on full-body-scanner screens by the new software. Credit: L3 Communications

The new Consumer Financial Protection Bureau on Tuesday warned banks not to violate laws that protect active-duty military personnel from home foreclosures and high interest rates.

The move comes after news reports of apparent violations by JPMorgan Chase and Deutsche Bank of the Servicemembers Civil Relief Act, a 2003 law that protects military families.

In letters to the chief executives of the 25 largest banks that provide mortgage servicing, Holly Petraeus, the head of the still-forming bureau's Office of Servicemember Affairs, urged them to educate their employees about the law and take other "proactive steps."

"The SCRA provides important protections for our military families who do so much for our country,"  Petraeus wrote. "I know that you appreciate the importance of these SCRA protections, and I appreciate your assistance in ensuring that your bank does not overlook its obligations –- legal and otherwise –- to your military customers."

Following an NBC News report, JPMorgan Chase said last month that it had "made mistakes" and was refunding about $2 million in overcharges to military families. The New York Times last week reported an apparent violation involving Deutsche Bank.

Some members of Congress have called for investigations into violations of the law, which prohibits banks from charging more than 6% interest on the debts of active-duty service members and foreclosure proceedings. 

Petraeus, the wife of Army Gen. David H. Petraeus, the top U.S. commander in Afghanistan, was appointed last month to the implementation team setting up the consumer bureau. The longtime advocate for military families was tapped by Elizabeth Warren, an advisor to President Obama and Treasury Secretary Timothy F. Geithner who is setting up the bureau.

The bureau, created by the financial overhaul law, was designed to protect consumers in the financial marketplace and will begin full operations in July.

-- Jim Puzzanghera

Photo: Elizabeth Warren (left) and Holly Petraeus. Credit: Bloomberg.

Wall Street’s bulls drove the stock market to new multiyear highs Tuesday, emboldened by fresh signs that the economy’s momentum in the fourth quarter spilled into January.

The Dow Jones industrial average closed above the 12,000 level for the first time since June 2008 --   another milestone in the market’s rebound from its deep plunge after the financial crisis.

Shaking off the continuing social unrest in the Middle East, the Dow jumped 148.23 points, or 1.2%, to end the session at 12,040.16.

The blue-chip index now is up 84% from its 12-year low of 6,547 reached in March 2009. It's still 15% below its record high of 14,164 set in October 2007.

Most market indexes on Tuesday posted their biggest gains of the new year. The Standard & Poor’s 500 index rose 1.7% and the tech-dominated Nasdaq composite rallied 1.9%.

While the prospect of revolution in Egypt had sent oil prices surging Friday and triggered a global sell-off in stocks, by Monday equity markets were stabilizing.

On Tuesday, buyers swarmed again after the Institute for Supply Management said its index of U.S. manufacturing activity nationwide in January rose to the highest level since May 2004.

The index came in at 60.8 compared with analysts’ consensus estimate of 58.0. Any index reading above 50 indicates expansion.

Despite the risks posed by Middle East unrest, stock investors are taking the view that “when the domestic economy’s momentum really starts to kick in, the rest of this stuff doesn’t matter,” said Barry Knapp, equity strategist at Barclays Capital in New York.

A pullback in oil prices also buoyed the mood Tuesday. Near-term crude futures in New York fell $1.42 to $90.77 a barrel after reaching a two-year high Monday.

Investors also have been encouraged by generally strong fourth-quarter corporate earnings. Better-than-expected reports from UPS and Pfizer helped to stoke the rally Tuesday.

Stocks had surged in the fourth quarter as the economy picked up speed and as the Federal Reserve pledged to continue pumping money into the financial system to underpin growth.

As 2011 began, some analysts warned that the market was ripe for a pullback. A modest sell-off did hit smaller stocks in mid-January but failed to halt the momentum in the market overall.

The Dow now is up 4% this year after rising 11% in 2010. The S&P 500 also is up 4% this year and the Nasdaq index is up 3.7%. . . .

After initially balking, Blue Shield of California has agreed to a request by the state's insurance commissioner to delay a March 1 rate increase for 60 days.

California Insurance Commissioner Dave Jones had called on the San Francisco-based insurer last month to postpone the pending increase for nearly 200,000 individual policyholders so his office could closely examine the paperwork. But the nonprofit company said it would go ahead with its hike and hire an outside actuary to review its filing.

On Tuesday, the company did an about-face. Chief Executive Bruce Bodaken said Blue Shield would comply with Jones’ request.

“We are taking this action to remove any doubt that the rates we have submitted are necessary to pay the medical expenses of our individual members,” he said.

“Even with these increases, we don’t expect the premiums to cover the cost of medical care for these members,” Bodaken added.

Blue Shield has faced intense criticism from consumer groups and elected leaders for seeking multiple rate increases over a six-month period that could push policyholders' rates up as much as 59% cumulatively. The insurer blamed the increases on escalating healthcare costs and new government mandates, among other factors.

Three of Blue Shield’s competitors -- Aetna Inc., Anthem Blue Cross and PacifiCare –- already agreed last week to delay their own rate increases for 60 days to give Jones time to review them.

Jones said that hundreds of Blue Shield policyholders had contacted his office to voice their anxiety about the rate hikes. On Tuesday, Jones said that he was pleased that Blue Shield had joined the other insurers, and that the delays would give his office “adequate time to review their proposed rate filings to ensure that the information submitted is complete, accurate and in compliance with the law.”

Jones said that his department does not have authority to reject excessive rate increases, but that he will determine whether all of the proposed hikes are “unreasonable.” He said he would post the information on his website.

-- Stephen Ceasar and Duke Helfand

After three difficult years, restaurant sales will rebound modestly in 2011, a trade group predicted Tuesday.

The National Restaurant Assn. says Americans will spend about 1.1% more in inflation-adjusted dollars eating out this year than they did in 2010. As they have been throughout the recession and its aftermath, sales will be most robust at fast-food outlets, the industry organization said. But there will also be increased business for caterers and at full-service restaurants.

The industry is also expected to outpace the rest of the economy in terms of job growth, a trend that continues from last year.

Driving the trend is the recent improvement -- however slight -- in the national unemployment picture, said Hudson Riehle, head of research for the association. That's because working people have more money to spend on restaurants -- and less time to cook, he said.

"As a result of the extremely weak employment situation over the past several years, consumers did cut back on both frequency and spending at restaurants," he said.

-- Sharon Bernstein

While the top 20 most expensive Southern California communities have struggled to varying degrees during the housing downturn, San Marino alone has avoided a drop in annual median home prices.

The San Gabriel city recorded its peak annual price last year at $1,524,000, according to statistics from MDA DataQuick. Meanwhile, Malibu is down more than 28% from it's 2007 high point.

San Marino has superior schools and a housing stock of stately mansions, but what seems to be making the difference is a steady influx of Asian buyers and investors keeping competition alive and values buoyant, real estate experts say.

-- Lauren Beale

Thoughts? Comments?

Corinthian Colleges Inc. lost money in its fiscal second quarter, and it looks like existing students could have to make up the difference.

The Santa Ana-based company announced Tuesday that it will eliminate 4% of its workforce -–  and raise average tuition prices a whopping 12% -– amid sagging student enrollment and a nationwide controversy over for-profit colleges.

The company reported a $163.7-million loss for the quarter ended Dec. 31, compared with net income of $39.4 million a year ago. The figure for the most recent quarter included a charge of $206 million.

Enrollment of new students –- the lifeblood of any school -– fell 8% in the period, and the company predicted that new enrollments could sink an additional 15% to 17% in the third quarter.

Corinthian attributed the enrollment drop to its decision last year to stop accepting the most troubled students amid a regulatory crackdown on the industry.

“Negative industry publicity and uncertainties in the regulatory environment also played a role in the decline,” Jack Massimino, Corinthian’s chairman and chief executive, said in a statement.

Federal lawmakers and education-industry groups have criticized Corinthian and other so-called for-profit colleges for high student-loan default rates.

Investors appeared satisfied with Corinthian’s performance. Its shares, which have fallen more than 70% since last April, rose 25 cents, or 4.8%, to $5.53.

Despite the layoffs, Massimino doesn’t appear to be among those will who suffer a financial hardship from Corinthian’s woes.

The company said in a filing with the Securities and Exchange Commission that Massimino could earn a bonus in the current fiscal year of as much as 115% of his base salary.

-- Walter Hamilton

The National Highway Traffic Safety Administration said it has opened an investigation into steering problems in about 400,000 1996-2004 Nissan Pathfinders and 1997-2003 Infiniti QX4 SUVs. Both brands are owned by Nissan.

Safety regulators said they have 35 reports of undue corrosion on the driver's side front strut tower that can cause a loss of steering control.

RELATED:

Autos sales off to good start

Used car prices fall, but SUV prices are up big

Chrysler still losing money but sees small 2011 profit

-- Jerry Hirsch
Twitter.com/LATImesJerry

Photo: 2004 Pathfinder. Credit: Nissan

The stock market is firing on all cylinders Tuesday, pushing the Dow Jones industrial average back above the 12,000 level.

Egypt’s social upheaval seems barely an afterthought.

The Dow was up 146 points, or 1.2%, to 12,038 at about 10:45 a.m. PST amid a broad market rally. A close above 12,000 would be the first since June 2008.

The Institute for Supply Management’s index of manufacturing activity nationwide in January came in well above expectations, at 60.8 compared with analysts’ consensus estimate of 58.0.

Any index reading above 50 indicates expansion. The January figure is the highest since May 2004.

Many market bulls wanted evidence that the economy’s strength in the fourth quarter carried into the first quarter. The ISM index is confirmation.

“Overall, this report ranks among the strongest signs to date that the economy is moving into a  phase of stronger sustainable growth,” said David Resler, economist at Nomura Securities in New York.

What’s more, the gains in manufacturing are important because they can help offset the economic drag from a still-dismal housing market.

Strong January car sales underscored the renewed optimism about the manufacturing sector.

Wall Street also is cheering some upbeat quarterly earnings reports from companies including Pfizer and  UPS.

Meanwhile, crude oil prices have stabilized after surging the last two days. Near-term oil futures were off 69 cents to $91.50 a barrel in New York. Middle East unrest drove oil up $3.70 a barrel on Friday and $2.85 on Monday.

-- Tom Petruno

Following up on the hullaballoo in the city of Bell, where a Los Angeles Times investigation found council members and administrators receiving six-figure salaries for part-time work, State Controller John Chiang has scurried to unveil salaries of state employees. His office unveiled a new website Tuesday where anyone can look up how much, for instance, an animal control officer is paid in Calaveras County.

A quick look through the website reveals that for most people, working for the state of California is no way to get rich quick, although it may be a way to get very good teeth. An animal control officer in Calaveras County, the site reveals, was paid just $39,061 in 2009, but employer contributions to health, dental and vision plans totaled $10,446.

An automotive mechanic for Fleet Services in Fresno County -- a job Gov. Jerry Brown is trying to downsize, as he proposes halving the state vehicle fleet -- was paid $40,222 in 2009. The same automotive mechanic received $8,000 in employer contributions to health, dental and vision plans. The median salary for automotive mechanics in the U.S. is about $34,000.

There are, of course, some well-paid employees. In Los Angeles County, many deputy district attorneys make six figures -- one made $105,898 in 2009, plus $10,527 in medical contributions. Then again, entry-level district attorneys made as little as $32,805 in 2009, with just $2,017 in medical contributions. 

“Posting this information allows California residents to see where their public dollars are being spent and to better hold their local agencies accountable,” Chiang said in a statement Tuesday morning.

Maybe he meant hold them accountable for paying some employees what could be considered barely a minimum wage?

-- Alana Semuels

Photo: Eight current or former Bell city leaders plead not guilty in Division 30 at Los Angeles Superior Court on Thursday, Oct. 21, 2010. Credit: Al Seib/Los Angeles Times