Financial Biz Cheat Sheet: Shareholders File Suit Against BofA, American Express Partners With Tencent Holdings
American Express (NYSE:AXP) will offer an online payment service with Tencent Holdings, allowing users of Tencent’s online service to make purchases outside of China. Alibaba currently takes 45% of such third-party online payments in China, while Tencent’s share is 21%.
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Bank of America (NYSE:BAC) shareholders are filing a lawsuit against the bank, claiming that the bank and its executives failed to disclose a $15 billion loss at Merrill Lynch before its acquisition. Damages could run as high as $50 billion, and could result in directors and officers, such as former CEO Ken Lewis or former CFO Joe Price, having to pay money personally to settle charges of securities fraud.
Man Group is trading lower today after saying assets under management fell 8% to $65 billion despite record fund sales. Redemptions accounted for a $2.6 billion loss, while negative performance accounted for another $1.5 billion, and a stronger dollar (versus the euro and aussie) pushed AUM down $1.9 billion.
Citigroup (NYSE:C) CEO Vikram Pandit says he had hoped the bank would have been able to return cash to shareholders next year, but they will likely have to wait until 2013, when he says they will be able to return significant amounts. Pandit says the bank will disclose more on its cost structure when it releases third-quarter earnings, and will give more guidance on expenses at that time.