US sends UK trader to jail
A former top Credit Suisse trader was sentenced to two-and-a-half years in prison on Friday in New York for inflating subprime mortgage-related bond prices during the housing market collapse. British citizen Kareem Serageldin, 40, was extradited by Great Britain to the US in April and pleaded guilty. The fraud allegedly took place between late 2007 and early 2008, as the collapsing US housing bubble sent millions of home mortgages into default and wiped off hundreds of billions of US dollars in value from mortgage-backed securities widely held by banks and other institutional investors.
Duo eye Time Warner Cable
Comcast Corp and Charter Communications Inc, aiming to reshape the cable industry, have discussed a joint bid to buy Time Warner Cable Inc and divvy up its customers, people with knowledge of the matter said. Each company’s coverage area could be enhanced by adding parts of Time Warner Cable’s network, said the people, who asked not to be identified because the matter is private. The talks between Comcast and Charter have been preliminary, and a Time Warner Cable breakup is one option amid several under consideration, the people said. Time Warner Cable, the second-largest US cable company, is emerging as an acquisition target amid renewed attempts to consolidate the industry.
California sells permits
California, the second-largest carbon-emitting state in the US, sold 16.6 million carbon allowances at auction for US$11.48 each, roughly in line with analysts’ expectations. Units of Chevron Corp, JPMorgan Chase & Co, Morgan Stanley and PG&E Corp were among the companies that qualified to buy permits in the Nov. 19 auction, a report posted on the state Air Resources Board’s Web site on Friday showed. The agency does not disclose the names of winning bidders. The state received 1.82 offers for every permit put up for sale. Tehe credits, each approving the release of a metric tonne of carbon, are traded as part of the world’s second-largest carbon market, established by California last year in an effort to cut greenhouse-gas emissions to 1990 levels by 2020. The auction results were “kind of right in line with expectations,” Mark Struk, senior vice president of environmental trading and advisory for Alpha Inception LLC, a Houston-based consulting firm, said by telephone.
Fisker files for bankruptcy
Fisker Automotive Inc, whose US$103,000 luxury hybrid car was driven by celebrities including Justin Bieber and Leonardo DiCaprio, filed for bankruptcy with plans to sell itself to Hybrid Tech Holdings LLC. The Anaheim, California-based company listed assets of as much as US$500 million and debt of as much as US$1 billion in a Chapter 11 petition filed on Friday in US Bankruptcy Court in Wilmington, Delaware. Assets include a shuttered General Motors Co factory in Wilmington that Fisker had planned to reopen. Safety recalls, a battery supplier that went bankrupt and shipments lost to Hurricane Sandy all contributed to the company’s financial woes, Henrik Fisker, the auto designer who co-founded the company, told the US Congress in a hearing on April 24.