Print

Mail

wiki links

World Business Quick Take

■ Banking
Class action nets billions
Four investment banks on Wednesday agreed to pay a total of US$428.4 million to settle claims stemming from a class-action lawsuit brought by former shareholders of WorldCom Inc. New York state comptroller Alan Hevesi said in a statement that he had reached an agreement with Amsterdam-based ABN AMRO Bank for US$278.4 million. Mitsubishi Securities International Plc agreed to pay US$75 million, while BNP Paribas Securities Corp. and Mizuho International both agreed to pay US$37.5 million. Wednesday's settlements bring the total amount paid by investment banks to settle the suit to US$3.56 billion, surpassing the US$3.2 billion settlement by services giant Cendant Corp in 2000 over accounting fraud that cost shareholders billions, Hevesi said. Last week, Lehman Brothers Inc of New York agreed to pay US$62.7 million to settle the suit. Three other banks each agreed to pay US$12.54 million -- Credit Suisse First Boston; Goldman, Sachs and Co of New York; and UBS Warburg LLC.

■ Banking
HSBC boosts HK staff
HSBC Holdings Plc, Europe's largest bank by market value, plans to hire 200 employees to help sell wealth-management products in Hong Kong as it opens 18 financial management centers in the city to boost fee income. "We will continue to reduce our reliance on traditional interest income sources because of declining margins," said Dorothy Sit, head of personal financial services in Hong Kong, at a press briefing today. "We hope 2004 was the worst, but some things are beyond our control." HSBC reported its slowest earnings growth in two-and-a-half years as earnings from consumer lending in the US declined.

■ Litigation
Coach fed up with Vuitton
Coach, Inc, a leading marketer of modern classic American accessories, said on Wednesday it has filed a complaint with the Japanese Fair Trade Commission against French firm LVMH Moet Hennessy Louis Vuitton, accusing it of harassing and anti-competitive practices. The complaint, filed in Tokyo on Tuesday, alleges LVMH engaged in inappropriate and threatening behavior by exerting pressure on common business partners in Japan. LVMH is being accused of threatening department-store management with either not going forward with development plans or pulling the Louis Vuitton brand out of certain locations entirely if the retailers allowed Coach to open or expand.

■ Gold
Ten-week high for gold
Gold rose to its highest level in 10 weeks after the US dollar weakened to a nine-week low against the euro, boosting the precious metal's appeal as an alternative investment to US stocks. The US dollar fell in Asia after Japanese Prime Minister Junichiro Koizumi said his country "in general" needs to consider diversifying its foreign reserves. Spot gold prices have gained 10.5 percent in the last 12 months as the euro rose 9.8 percent against the dollar in the same period. Gold for immediate delivery rose as much as US$2.06, or 0.5 percent, to US$442.65 an ounce, the highest since an intraday high of US$444.49 last Dec. 29. It traded at US$442.15 an ounce at 2:42pm Singapore time, up US$1.55 from US$440.60 yesterday in New York, the highest closing price since Dec. 28.

This story has been viewed 1577 times.