Judge refuses to block merger
A judge refused to block a merger between American Airlines and US Airways on Friday, saying a bankruptcy judge correctly rejected arguments made by a lawyer for some consumers. San Francisco attorney Joseph Alioto argued that the deal would harm fliers because it would result in less competition and higher prices. However, US District Judge Loretta Preska repeatedly said that his arguments relied on outdated facts, had no evidence to support them and sometimes made no sense. American has said it plans to complete the merger with Tempe, Arizona-based US Airways on Monday. Preska said a federal bankruptcy judge was “correct in all respects” in deciding last week to let the merger proceed.
Ex-Goldman trader gets jail
Former Goldman Sachs Group Inc trader Matthew Taylor was sentenced on Friday to serve nine months in prison and pay US$118 million in restitution to his former employer after he pleaded guilty to pursuing an unauthorized US$8.3 billion futures trade in 2007. In imposing a sentence well below the 33-to-41-month term that the US Department of Justice had recommended, US District Judge William Pauley in New York castigated both Goldman and government authorities for failing to immediately address Taylor’s conduct when it occurred. The case is a “paradigm of everything that is wrong with Wall Street and the regulators charged with protecting the public,” Pauley said. Prosecutors claimed Taylor lied to supervisors and fabricated trades in December 2007 to conceal an US$8.3 billion position in Standard & Poor’s 500 E-mini futures contracts, which bet on the direction of that index. Goldman fired him shortly thereafter.
Countrywide settles US$500m
Bank of America Corp’s Countrywide unit won final approval of a US$500 million class-action settlement with investors who claimed they were duped into buying its mortgage-backed securities. US District Judge Mariana Pfaelzer in Los Angeles said the settlement was a fair outcome because her previous rulings prevented the investors from recovering damages from Bank of America as Countrywide’s parent and because the Charlotte, North Carolina-based bank said as recently as June that it might put Countrywide in bankruptcy. The settlement resolves claims that Countrywide misled investors in offering documents about the quality of the home loans that were pooled for the securities.
Drones a ‘fantasy’: EBay
EBay Inc chief executive officer John Donahoe called the delivery of products by drones — a project that rival Amazon.com Inc is working on — a fantasy. “We’re not really focusing on long-term fantasies,” Donahoe said in an interview with Emily Chang on Bloomberg Television when she asked if he would be showing her a drone. “We’re working on things that will change consumers’ experiences on Friday,” he said. Amazon CEO Jeff Bezos said this week that the world’s largest e-commerce company is testing drones to deliver small packages, an initiative that he anticipates will happen within five years. The endeavor was met with resistance from regulators and skepticism from couriers.
ELECTRIC FARMLAND: TSMC’s proposal to clear 230 hectares of reforested land for what would become Taiwan’s largest photovoltaic solar farm has generated concerns New rules curbing solar farms built on agricultural land sparked fierce debate at a packed public hearing at the Legislative Yuan yesterday, with industry representatives saying that the new restrictions would endanger President Tsai Ing-wen’s (蔡英文) green energy goals, while agricultural officials emphasized the importance of protecting farmers and the environment. The Tsai administration has set a target to generate 20 percent of the nation’s power from renewable sources by 2025, by which time it also aims to install 20 gigawatts (GW) of solar power, including 6GW from rooftop solar systems and 14GW from ground-mounted solar farms. Although rooftop solar systems are
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday posted monthly revenue that suggested second-quarter sales surpassed analysts’ estimates, underscoring how its technological lead is helping the chipmaker weather the COVID-19 pandemic and US sanctions on its second-biggest customer Huawei Technologies Co (華為). Apple Inc’s main iPhone chipmaker posted sales of NT$120.88 billion (US$4.08 billion) for last month, up 40.8 percent year-on-year and bringing its revenue for the second quarter to NT$310.7 billion, beating the NT$308.8 billion analysts expected on average. TSMC, a barometer for the industry thanks to its heft in the global supply chain, had previously lowered its revenue outlook for this
‘SENSITIVE MARKETS’: The previously unannounced project would involve the company handing over control of data to a third party to sidestep privacy concerns Google has abandoned plans to offer a major new cloud service in China and other politically sensitive countries due in part to concerns over geopolitical tensions and the COVID-19 pandemic, two employees familiar with the matter said, revealing the challenges for US tech giants to secure business in those markets. In May, the search giant shut down the initiative, known as “Isolated Region” and which sought to address nations’ desires to control data within their borders, the employees said. The action was considered a “massive strategy shift,” said one of the employees, who added that Isolated Region had involved hundreds of employees
BIODEGRADABLE POLYMER: The bank said that its iPass credit card, the first such card issued by a foreign bank, gives it access to stores that do not accept its credit cards DBS Bank Taiwan (星展台灣) yesterday launched its first co-branded credit card with iPass Corp (一卡通票證), and said it expects its credit card business to fully recover in the second half of this year. The new “DBS eco card” is made of polylactic acid — a bio-based biodegradable polymer that can be produced from renewable resources — and is the bank’s first credit card to have the iPass electronic payment function, it said. The partnership would give the bank new business momentum, DBS Bank Taiwan general manager Lim Him-chuan (林鑫川) told a news conference in Taipei. That is because some stores and supermarkets in