Investors attack BoA settlement
Bank of America’s plan to pay $8.5bn to compensate 22 institutional investors for soured mortgage-backed securities is a “Frankenstein settlement”, and should be rejected, a lawyer for a dissenting group of investors told a New York judge Tuesday. The claim came as lawyers for investors locked in combat over the proposed settlement made their last pitches after eight weeks of hearings. BofA and a group of investors that includes BlackRock, MetLife and Pimco, agreed to the $8.5bn deal more than two years ago to resolve claims on mortgage-backed securities issued by Countrywide, the troubled bank it rescued in 2008.
Let some Tories stand as Liberals
David Cameron’s rebranding project for the Tories has failed and he should let some Conservative candidates stand as “National Liberals” at the next election, according to a leading party moderniser. Nick Boles said allowing some candidates distance themselves from the Tory badge in 2015 would help shake off the party’s “heartless” image.
Germany exports ‘ benefit Spain’
Germany’s booming export industry is helping Spain to overcome its own economic crisis, the Spanish economy minister has said, in remarks that offer rare support to Berlin at a time when its current account surplus is under international fire as never before.
Delhi sends deal into tailspin
A £480m contract to supply 12 British-built helicopters to India was on the brink of collapse today after a bribery scandal prompted Delhi to scupper the deal. Executives from AgustaWestland were scheduled to meet officials in a last-ditch effort to rescue the deal.
Home loan clause crackdown
Get-out clauses buried in the fine print of mortgage deals could be outlawed after it emerged that more lenders are seeking to push through interest rate increases on so-called tracker loans, in spite of the base rate freeze.
The Daily Telegraph
Diageo chief to slow down buys
Diageo’s new chief executive, Ivan Menezes, has signalled an end to the company’s fast pace of acquisitions in the emerging markets, after spending £3bn on deals over the last four years.
Banks urge chancellor not to cap Isas
Savers should be permitted to put their full Isa allowance of £11,520 in cash accounts, banks have urged. The British Bankers’ Association has submitted a 13-page document to the Treasury ahead of the chancellor’s Autumn Statement on 5 December calling for action.
THE WALL STREET JOURNAL
J&J agrees to pay $2.5bn
Johnson & Johnson agreed to pay at least $2.5bn to resolve thousands of lawsuits filed by patients who alleged they were injured by the company’s artificial hips.
Bloomberg tobacco ban for U21s
Mayor Michael Bloomberg yesterday signed into law a bill that raises the minimum age to purchase tobacco products in New York City to 21 from 18, a policy his administration hopes will be replicated around the globe. The new law – the strictest of any major city in the nation – is New York’s latest effort to combat smoking.