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Kellogg Shutters Distribution Centers, Lays Off Workers

BERLIN, May 30 (Reuters) - Portugal's banks show no signs of needing further state aid and the country does not need a bad bank, Prime Minister Antonio Costa told German newspaper Handelsblatt in an interview published on Tuesday.

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It has been cutting costs as sales decline amid changing consumer trends. FILE - In a Wednesday, July 18, 2012, file photo, Kellogg's cereals are on display at a Pittsburgh grocery market. The company is following through on a prior decision to shift to a warehouse system. Kellogg is closing distribution centers around the nation, laying off more than 1,000 workers.

Costa said his government was working with the national central bank to further stabilise the banking sector by setting up a platform for banks to coordinate the repayment of debts, as many firms had loans with several lenders.

Other closings include centers in Houston and Fort Worth, Texas, affecting 420 workers. The Battle Creek, Michigan-based company will shut down a distribution center in Memphis and lay off 172 workers. It will close a center in Sharonville, Ohio, and lay off nearly 250 employees. Facilities in Charlotte and Greensboro, North Carolina, will also close, affecting 500 workers.

Mayor Bill de Blasio and Comptroller Scott Stringer said Wednesday they will vote as members of the city's Banking Commission to bar city agencies from renewing or expanding existing contracts with the bank. Wells currently holds $227 million in city deposits.

Being a lead bookrunner allows banks like Wells to be the main bank when a city agency needs to issue fresh debt. More importantly, the two said they will vote to end Wells Fargo's role as senior book runner for the city's general obligation bond sales as well as book runner for the New York City Transitional Finance Authority, a city agency used to finance major capital improvements.

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Until then, we will not be entering new contracts with the bank," de Blasio said in a statement. "I encourage Wells Fargo to quickly clean up its act and do right by the millions of customers who trust the bank with their savings.