News Column


August 7, 2014

Bank of America settlement looms Bank of America has reached an agreement in principle to pay more than $16bn (9.49bn) in cash and consumer relief to US authorities to resolve allegations it mis-led investors in mortgage-backed securities, people familiar with the matter said. The bank will pay around $9bn in cash and provide $7bn in consumer relief, such as modifying home loans and refinancing mortgages, as part of the deal, these people say. If finalised, it will be the Department of Justice's largest settlement with a single entity, exceeding the $13bn pact that JPMorgan Chase agreed last year. So far this year banks have paid more than $50bn to resolve government investigations.

Driverless trains coming down track The rail industry has begun a review into using driverless technology to bring automated trains to Britain's railways. Train companies are working with Network Rail to look at how and when computer-driven trains might be brought in more widely after the technology is introduced in 2018 on a section of the Thameslink line.

Goldman chat named Symphony Goldman Sachs' new in-house messaging service, which was referred to as Babel or Babble during the development process, will actually be named Symphony. The messaging system would replace the bank's use of Bloomberg, the messaging tool which has been the industry standard.

Threat of new financial crisis The head of the Indian central bank, Raghuram Rajan, one of the few economists to have spotted the looming crisis in 2005, said central banks were operating on a "hope and a prayer" that markets will not plunge the global economy back into crisis.

Jenga tower can finally stand tall A 50-storey skyscraper in Vauxhall that has been dubbed the "Jenga Tower" because of its blocky, overhanging design, has been given approval despite fierce local opposition. The New Bondway building, consisting of two towers, will provide 450 flats, including 90 affordable units.

Argentina hits US for 'playing dumb' Argentina has accused the US of "playing dumb" over its second default in 12 years, calling on the government to rein in the judge overseeing the court battle. Axel Kicillof, Argentina''s economy minister, urged the US to limit the powers of judge Thomas Griesa, who has jurisdiction over the $1.5bn (890m) Argentina owes bondholders.

Apple products ban for China officials The Chinese government has banned state officials from buying Apple gadgets, according to reports, amid fears that America could hijack the company's iPads and iPhones to spy on Beijing, the lastest salvo between the superpowers.

Chrysler profit jumps Chrysler Group's second-quarter income rose 22 per cent to $619m (367.3m), bolstered by rising demand for the company's pickup trucks and sport-utility vehicles and further underscoring its importance to Italian parent Fiat.

Greece approves bailout changes Greece''s parliament has approved legislation needed for the country to receive an installment of 1bn (790m) from a bailout package by the International Monetary Fund and Europe. The legislation requires that taxpayers or companies found guilty of tax evasion will have their tax registration number suspended or withdrawn.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: City A.M. (UK)

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