Page 25 - AD
P. 25
BUSINESS A25
Tuesday 12 April 2016
US, Goldman Sachs reach $5B settlement over risky mortgages
ERIC TUCKER It requires the bank to pay a General Stuart Delery said tions or penalties, is likely closed the settlement in
Associated Press $2.4 billion civil penalty and in a statement. to stir additional criticism January, but federal of-
WASHINGTON (AP) — The $1.8 billion in relief to ho- The agreement is the lat- about the department’s in- ficials laid out additional
U.S. Justice Department meowners and distressed est multi-billion-dollar civil ability to hold bank execu- allegations in a statement
on Monday announced a borrowers, along with $875 settlement reached with a tives personally responsible of facts as they accused
$5 billion settlement with million in other claims. major bank over the eco- for the financial crisis. At- the bank of making serious
Goldman Sachs over the “This resolution holds Gold- nomic meltdown in which tempting to address those misrepresentations about
sale of mortgage-backed man Sachs accountable millions of Americans lost concerns, Deputy Attorney the quality of mortgage-
securities leading up to the for its serious misconduct their homes to foreclosure. General Sally Quillian Yates backed securities it issued.
2008 financial crisis. in falsely assuring investors Other banks that settled in issued department-wide The poor quality of the
The deal resolves state and that securities it sold were the past two years include guidance last year aimed loans led to huge losses for
federal investigations into backed by sound mort- Bank of America, Citigroup at encouraging more crimi- investors and a slew of fore-
the sale of shoddy mort- gages, when it knew that and JPMorgan Chase & nal prosecutions of individ- closures, kicking off the re-
gages before the housing they were full of mortgag- Co. uals for white-collar wrong- cession that began in late
bubble and subsequent es that were likely to fail,” But the deal, which in- doing. 2007.q
economic meltdown. Acting Associate Attorney cludes no criminal sanc- Goldman previously dis-
Canadian Pacific ends takeover bid for Norfolk Southern
JOSH FUNK A Canadian Pacific freight train travels around Morant’s Curve near Baker Creek, Alberta. Cana- the East Coast, Midwest
AP Business Writer dian Pacific said Monday, April 11, 2016, it is ending its nearly $30 billion takeover bid for Norfolk and South. Canadian Pa-
OMAHA, Neb. (AP) — Ca- Southern. cific first offered to buy Nor-
nadian Pacific said Mon- folk Southern in November.
day that it is ending its (Frank Gunn/The Canadian Press via AP) Canadian Pacific had
nearly $30 billion takeover asked regulators to evalu-
bid for Norfolk Southern, clear path to a friendly U.S., and many observers railroads in Canada and ate its proposed structure
less than six months after it merger at this time.” believed it would have trig- parts of the U.S. Midwest of a voting trust for the
offered to buy the rival rail- A deal would have ex- gered a wave of railroad and South, while Norfolk deal that would have in-
road. panded Canadian Pacif- mergers. Southern of Norfolk, Virgin- stalled Harrison as Norfolk
Norfolk Southern had re- ic’s rail network across the Canadian Pacific operates ia, operates railroads along Southern’s CEO while the
jected Canadian Pacific’s overall deal was reviewed.
bids, saying that the Cal- The U.S. Justice Depart-
gary, ment said Friday that
Canada-based railroad the proposed structure
needed to raise its offer wouldn’t preserve the in-
and convince a rail regula- dependence of both rail-
tor that the structure of the roads, as required by rail
deal could be approved. merger rules.
Canadian Pacific is drop- Citi Investment Research
ping the deal before the analyst Christian Weth-
federal Surface Transpor- erbee said the timing of
tation Board could rule on Canadian Pacific’s an-
its proposed structure and nouncement was a bit of a
before Norfolk Southern surprise,
shareholders vote whether
to support merger talks. but the Justice Depart-
Canadian Pacific CEO E. ment’s statement signaled
Hunter Harrison said Mon- it was unlikely regulators
day that there was “no would approve the deal.
q
Valeant:
Outgoing CEO to cooperate with Senate
The Associated Press an April 27 hearing. Aging regarding his deposi-
Valeant Pharmaceuticals The committee is planning tion and that those discus-
asked its CEO to cooper- its third hearing since De- sions are ongoing.” Valeant
ate with a Senate investi- cember on soaring drug Pharmaceuticals Interna-
gation into drug pricing af- prices. tional Inc. has built its busi-
ter he failed to appear for “The Board has requested ness in part by buying rights
a deposition. Mr. Pearson’s cooperation to older drugs and then
The Senate Special Com- in connection with a sub- hiking their prices. The Ca-
mittee on Aging said last poena for deposition from nadian drugmaker faces
week that it planned to the Senate Committee on three federal probes into its
start legal proceedings Aging prior to the Com- accounting and business-
against J. Michael Pearson, mittee’s scheduled April practices. Shares of Vale-
who is leaving Valeant af- 27 hearing,” Valeant said ant Pharmaceuticals Inter-
ter months of turmoil for the in a release Monday. “The national Inc. slid almost 4
drugmaker. Pearson is still Board understands that Mr. percent in midday trading
under subpoena to appear Pearson is in dialogue with Monday.q
before the committee for the Senate Committee on
