BofA $8.5-billion deal returned to NY state court
Bank of America won a victory when a US appeals court ruled that a proposed $8.5-billion settlement with investors in mortgage-backed securities should be reviewed in New York state court, not federal court. Bank of America is seeking to resolve liabilities from its purchase of Countrywide Financial in 2008. The settlement has been viewed as a template for other banks to address claims by investors who bought risky pools of mortgages before the housing market collapsed. The ruling by the second US circuit court of appeals on Monday reverses an October decision by US district judge William Pauley who had taken the case from state court.
Fukushima: Japan leaders feared chain reaction
Japans prime minister ordered workers to remain at the tsunami-crippled Fukushima nuclear plant last March as fears mounted of a devils chain reaction that would force tens of millions of people to flee Tokyo, a new investigative report shows. Then-premier Naoto Kan and his staff began referring to a worst case scenario that could threaten Japans existence as a nation around three days after the March 11 earthquake and tsunami, according to the report by a panel set up by a private think-tank. That was when fears mounted that thousands of spent fuel rods stored at a damaged reactor would melt and spew radiation after a hydrogen explosion at an adjacent reactor building, according to the panel report.
UK says bank tried to avoid $800 million in tax
Britain has ordered a bank to pay half a billion pounds ($800 million) in unpaid tax that it tried to avoid by exploiting regulatory loopholes, a government minister said Monday. Exchequer secretary David Gauke said the bank had sought to use an aggressive avoidance scheme to dodge corporation tax on profit made buying back its own debt. It also carried out a scheme to seek repayment from the government of tax it had never paid. The government did not name the bank, but the media reports identified it as Barclays. The bank could not be reached for comment.
Peugeot may sell 7% stake to GM in alliance
PSA Peugeot Citroen may soon announce plans to sell a stake of about 7% in the French carmaker to General Motors as part of a development alliance, Bloomberg reported, quoting people familiar with the matter. The deal would involve a standstill agreement by which GM would not take a greater holding in the Paris-based carmaker without permission, said the people, who asked not to be identified because the talks are private. Peugeot may offer additional shares through a rights issue as part of the transaction, the people said.