Treasury provides another $4.7B to banks
WASHINGTON – The Treasury Department says it has provided an additional $4.7 billion to 92 banks as part of the government’s $700 billion rescue of the financial system.
The department released a list of 49 banks that got final approval last Friday to receive $2.8 billion. It said an additional 43 banks received final approval Tuesday, but those names will not be released until Monday.
Treasury also confirmed that it had given preliminary approval to American Express Co. and CIT Group to receive support from the $700 billion bailout fund.
The money is being disbursed as part of the government’s effort to buy stock in banks, to bolster their balance sheets and spur them to step up lending to fight the worst financial crisis to hit the country in seven decades.
But critics contend that many banks are not using the government funds for the purpose Congress intended.
An Associated Press survey of 21 banks that received at least $1 billion each in government support found that none of them would provide specific answers on how the money was used.
Madoff investor who lost $1.4 billion kills self
NEW YORK – The founder of an investment fund that lost $1.4 billion with Bernard Madoff was discovered dead Tuesday after committing suicide at his Madison Avenue office, marking a grim turn in a scandal that has left investors around the world in financial ruin.
Rene-Thierry Magon de la Villehuchet, 65, was found sitting at his desk at about 8 a.m. with both wrists slashed, New York Police Department spokesman Paul Browne said. A box cutter was found on the floor along with a bottle of sleeping pills on his desk. No suicide note was found.
De la Villehuchet was one of several fund managers to be hit hard in Madoff’s alleged $50 billion Ponzi scheme. Investment funds that lost big to Madoff are also facing backlash and investor lawsuits for not protecting their clients from the alleged fraud.
Wal-Mart pays millions to settle wage lawsuits
BENTONVILLE, Ark. – Wal-Mart Stores Inc. says it has settled 63 wage-and-hour abuse lawsuits against the company.
The discount retailer said Tuesday that the total amount to be paid depends on the amount of claims submitted by class members, but is expected to range from $352 million to $640 million.
The company’s leadership says many of the lawsuits were filed years ago and the allegations are not representative of the company it is today.
As part of the settlement, Wal-Mart agrees to continue to use various electronic systems and other measures to ensure compliance with wage and hour policies and law.
FedEx decides to forgo ads during Super Bowl
NEW YORK – Saying “times have changed,” FedEx Corp. announced it will not advertise during Super Bowl 43, set for Tampa Bay, Fla., on Feb. 1.
FedEx has run ads during the Super Bowl broadcast for the past 12 years and has had an advertising presence in 18 Super Bowls since 1989.