New York Fed sued over Goldman
A former bank examiner filed a suit against the Federal Reserve Bank of New York, claiming she was fired after criticising Goldman Sachs for its policies on managing conflicts of interest. Carmen Segarra is suing the New York Fed and three of its officials in federal court in New York, saying that her superiors interfered with her work examining Goldman and expressed concern that the bank would be harmed by her criticism. Her complaint is against the New York Fed and three of its employees. Goldman said: “We have no knowledge of internal Fed discussions nor the matters raised by Ms Segarra.”
Big banks make contingency plans
Big banks and investors are preparing contingency plans to deal with the potential impact on the $5tn “repo market” of the US government missing a payment on its bonds, even as Republicans propose a six-week reprieve for the debt ceiling limit.
Fiat-Chrysler boss denies warning
The increasingly complex and bitter battle over the future of Chrysler took a farcical turn when chief executive Sergio Marchionne denied reports that he had warned off potential investors in the US carmaker’s forthcoming IPO. Marchionne, also chief executive of Chrysler’s main owner Fiat, wants the carmaker to buy its partner outright, but has been forced into filing for an IPO.
Savoy must put cream on top
The Savoy Hotel faces pressure to improve its trading performance if it is to avoid breaching its banking covenants, according to its directors. The board noted that although projections suggested the luxury hotel would be able to meet the terms of its debts, they “assume an improvement in trading” its 2012 results filing show.
Etihad lifts holding in Virgin Australia
The battle for control of Australia’s skies took another twist when Etihad Airways said it had raised its stake in Virgin Australia to 19.9 per cent. The airline yesterday increased its holding from 10.5 per cent to the maximum permitted.
The Daily Telegraph
Jaeger to bring manufacturing back
The 129-year fashion brand Jaeger is planning to bring manufacturing back to Britain as part of a plan to rejuvenate its fortunes. The company, whose clothing was modelled by Audrey Hepburn and Marilyn Monroe, wants to use UK suppliers for its men’s tailoring as well as knitwear and accessories.
UK fracking ambitions threatened
The EU authorities have opened a new front in efforts to clamp down on shale gas, warning that the carbon footprint from methane emissions may be high enough to call into question the whole future of fracking in Europe.
THE WALL STREET JOURNAL
Alibaba Invests in Amazon Rival
Alibaba has led a $206 million investment in a rival to Amazon.com, one of its biggest U.S. moves as the Chinese e-commerce giant considers an initial public offering here. Alibaba invested in ShopRunner, which offers unlimited two-day shipping from retailers including Toys ‘R’ US
Hershey’s first new brand in 30 Years
Hershey plans to start selling Lancaster caramels—its first new brand in 30 years—in the US early next year, after launching the product this year in China.