Wednesday, June 11, 2014

Judge considers dismissing U.S. fraud case against Bank of America

By John Peragine and Aruna Viswanatha
ASHEVILLE N.C. (Reuters) - A federal judge on Wednesday said he would consider dismissing a U.S. Department of Justice lawsuit accusing Bank of America Corp of civil fraud in the sale of mortgage securities that soured during the global financial crisis.
While not issuing a formal ruling, U.S. District Judge Max Cogburn said he had concerns and indicated at a hearing in Asheville, North Carolina that he might adopt the recommendation of a federal magistrate judge for a dismissal of the fraud claims tied to the $850 million sale of securities.
"DOJ may not have the evidence to try this as a fraud case," Cogburn said.
Cogburn's skepticism comes at a crucial time, as the second-largest U.S. bank negotiates with the Justice Department and other federal and state authorities to potentially pay more than $12 billion to resolve a range of probes into its sale of mortgage securities that quickly imploded.
Cogburn also told assistant U.S. Attorney Daniel Ryan that the government needed to provide more substantial information to support its case.

Airbus setback as Emirates cancels $16bn order for 70 A350 jets

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Airbus suffered a major setback on Wednesday after it emerged that Emirates Airline, the fast-growing Gulf carrier, had cancelled a $16bn order for 70 of its new A350 passenger jets.
Dubai-based Emirates was to be one of the launch customers for the long-range A350, which is due to enter service at the end of the year to compete with Boeing’s Dreamliner and 777 aircraft.

RadioShack Is Collapsing

RadioShack shares were down as much as 21% in premarket trading after the electronics retailer reported a wider than expected quarterly loss.
The company posted a net loss of $98.3 million, or $0.97 a share. Analysts were looking for a loss of $0.52 per share.
Revenue fell 13% from a year ago to $736.7 million and on a same-store basis, sales fell 14%, which the company said was driven by traffic declines and poor sales in its mobile business. Analysts were expecting revenue of $767.5 million.
The electronics retailer said it ended the quarter with total liquidity of $423.7 million, including $61.8 million in cash and cash equivalents and $361.9 million available under a credit agreement. 
 "Overall, our first quarter performance was challenged by an industry-wide decline in consumer electronics and a soft mobility market which impacted traffic trends throughout the quarter," chief executive Joseph Magnacca said in a statement.
Gold Holds Near Two-Week High as Palladium ETPs Expand to Record
Gold held near the highest level in two weeks as a rally in equities faltered, boosting demand for alternative investments. Assets in palladium-backed exchange-traded products expanded to a record.
Gold for immediate delivery traded at $1,260.35 an ounce by 9:26 a.m. in Singapore from $1,261.07 yesterday, according to Bloomberg generic pricing. The metal yesterday climbed to $1,265.32, the highest level since May 28, as the Dow Jones Industrial Average halted a five-day advance after the World Bank cut its forecast for global growth.
The Washington-based lender said in a June 10 report that the world economy will expand 2.8 percent this year, compared with a January projection of 3.2 percent, amid slower growth in the U.S.,China and Russia. In China, the largest gold consumer, volumes for the benchmark spot contract Shanghai rose to a two-week high of 15,176 kilograms yesterday.