Financial Biz Cheat Sheet: MasterCard Climbs, Bank of America Workers Scramble
On Tuesday, a federal judge dismissed two lawsuits by Irving Picard, the trustee for Bernard Madoff’s victims. Most of the $19.9 billion suit against JPMorgan Chase & Co. (NYSE:JPM), Madoff’s top bank for 20 years, and a $2 billion suit against UBS AG (NYSE:UBS) were thrown out by the court.
This isn’t the first setback for Madoff’s victims: a claim for $8.6 billion against HSBC Holdings PLC (NYSE:HBC) had been dismissed in July.
Watch Now: Ruth Madoff Reveals All.
Contrary to rumors, an MF Global Holdings Ltd (MF) attorney told a bankruptcy judge that the alleged $700 million in missing client cash has been accounted for by the firm. The majority of the firm’s U.S. assets are in its brokerage unit, which is not part of the firm’s bankruptcy case and its foreign funds are with regulated entities.
The gross dollar volume of transactions grew 18.1 percent year over year, up 16.4 percent from the second quarter. The company also reported a 13.6 percent increase in U.S. dollar volume and 20.4 percent growth in international volume. Processed transactions jumped 20.5 percent from the second quarter’s 17.4 percent rise and MasterCard’s free cash flow sat at $991 million in the third quarter, up 72 percent year over year.
Lloyd’s Banking Group plc’s (NYSE:LYG) stock dove on the news that CEO Antonio Horta-Osorio will take a medical leave of absence; he is expected to return by year’s end. CFO Tim Tookey will act as his temporary replacement.
Bank of America’s (NYSE:BAC) employees are hoping the job market isn’t as bad as they say. Many are looking for external opportunities before the bank’s cost-cutting program, Project New BAC, is implemented. The bank will reportedly cut close to 40,000 jobs over the next few years. Rival banks and executive recruiters have received a flurry of resumes lately from the bank’s employees.