TR EMERITUS

Reuters, 5 February 2010 New York’s attorney general charged Bank of America’s former chief executive Kenneth Lewis and former chief financial officer Joe Price with fraud for allegedly misleading shareholders about the acquisition of Merrill Lynch. The US Securities and Exchange Commission separately said Bank of America agreed to pay a US$150 million civil fine and bolster disclosure and governance practices to settle its two lawsuits alleging poor disclosure of Merrill’s losses and US$3.6 billion of bonus payouts. That accord requires court approval. Thursday’s civil lawsuit by New York Attorney General Andrew Cuomo could complicate efforts by new Bank of America CEO Brian Moynihan to revive the largest US bank. Moynihan replaced Lewis, who retired under pressure at the end of last year after four decades at the bank. Lewis, 62, joins Countrywide Financial Corp’s Angelo Mozilo among major US financial services chief executives to face civil regulatory fraud charges over conduct since a global credit crisis began in the middle of 2007. Separately, Senator Carl Levin criticised Bank of America for failing to scrutinise questionable accounts by a notorious arms dealer and flag them for possible money laundering. Cuomo, invoking a powerful state law used to combat securities fraud, accused Bank of America, Lewis and Price of intentionally failing to disclose massive losses at Merrill prior to a December 5, 2008 shareholder vote on the merger. Cuomo also alleged that the defendants later misled the federal government in arguing that a “surprise” increase in Merrill’s losses would allow Bank of America to back out of the merger if it did not get massive taxpayer help. His lawsuit seeks unspecified monetary damages and other remedies. Merrill lost US$15.8 billion in the fourth quarter of 2008, but Cuomo said just US$1.4 billion surfaced between December 5 and when Bank of America began to raise alarm bells in Washington. “The behaviour is just egregious and reprehensible,” Cuomo said on a conference call with reporters. Bank of America took US$20 billion of bailout money from the federal government’s Troubled Asset Relief Program (Tarp) to help absorb Merrill. It has since repaid that sum. “Change is so obviously needed at Bank of America,” said Neil Barofsky, the Tarp special inspector general, on the conference call. Price remains at the bank, and was last month named head of consumer, small business and card banking. David Markowitz, who heads Cuomo’s investor protection bureau, said Moynihan is not under investigation. Cuomo filed the charges under the Martin Act, a New York law giving him extraordinary power in securities litigation and fighting financial fraud. The law dates from 1921, more than a decade before the SEC was created. Bob Stickler, a Bank of America spokesman, called Cuomo’s charges “regrettable” and without merit. “The evidence demonstrates that Bank of America and its executives, including Ken Lewis and Joe Price, at all times acted in good faith and consistent with their legal and fiduciary obligations,” he said. - Reuters  Read More →

Written by Our Correspondent Cyberspace is swirling with speculations on the identity of the civil servant who splashed out a cool USD$300,000 on the wedding of his daughter. The sensational news came to light when the couple Melissa Chin and Steve Choi sued their celebrity wedding planner David Tutera in New York for fraud and "severe emotional distress" after he failed to turn up for their dream extravaganza at Singapore's Shangri-La Hotel. Melissa Chin is a molecular biologist and her husband is an IT consultant. The Straits Times reported that their dream celebration in Singapore last year cost an estimated USD$300,000 and that Melissa is the older of two daughters of a civil servant here. New York Daily News reported that the couple gave Mr Tutera a US$100,000 deposit and four round-trip business-class tickets from New York to Singapore. It also said they would foot the bill for six nights at the Shangri-La Hotel in Singapore for him and his staff. Mr Tutera's spokesman Eda Kalkay has disputed the allegations and was cited in New York Post as saying that the pair had missed a final payment. She added that Ms Chin's father had told Mr Tutera not to get on the plane and that there was 'no more money'. The Chins had requested the cost of the lavish affair to be kept a secret due to the elder Chin's position in the government which runs counter to Tutera's contention that the fracas was a "publicity stunt." "Chin herself asked for publicity but requested that the dollar amount her family spent was not made public in respect to her father’s political position," he claimed. He added that he had to make the wedding suppliers sign confidentiality agreements so that the dollar sum would not be publicized. Some netizens speculated that Mr Chin could be Singapore's ambassador to China BG(ret) Chin Siat Yoon, but a quick check revealed otherwise. Singapore's senior civil servants are one of the highest paid in the world. A senior permanent secretary can earn more than S$300,000 a year. Mr Chin's eagerness to keep the cost of his daughter's lavish wedding under wraps is understandable following the controversy stirred by a senior civil servant Tan Yong Soon in 2008. Mr Tan boasted in an interview with the Sunday Times that he was able to take his family to a five-week cooking course in Paris which earned him the wrath and opprobrium of ordinary Singaporeans who are struggling to make ends meet. He was subsequently rapped in parliament for his "insensitivity" by the head of the civil service, Deputy Prime Minister Teo Chee Hean. Despite widespread unhappiness and discontent on the ground, the ruling party continues to insist that it needs to pay its ministers, MPs and senior civil servants astronomical salaries in order to retain them in the government. If you know the identity and position of Mr Chin, please contact us at [email protected]  Read More →

Top 8 will be a new regular Sports feature (published every Friday), where the editors will choose eight top persons/incidents and rank them in descending order, either by pure opinion, hard data or a mixture of both. Why eight? It is not because the editors are lazy but because top ten is getting boring and eight is a lucky number in Singapore! _________________________________________________________________________________________________ Ranking Methodology: 50% opinion; 50% statistics __________________________________________________________________________________________________ Ray Ang With more than half a season gone and the January transfer window just concluded, I am reviewing the Top 8 signings so far this season which has taken the Barclays Premier League by storm. 8) Glen Johnson (Liverpool) Yet another year of starting the season with high hopes but spluttering through half the season and putting themselves so far away from the title challengers that ending the season early will only be a relief to them, Glen Johnson remains the only bright spark in an otherwise insipid season for Liverpool. Despite being accused of being poor in defending by some critics, the England fullback’s absence in a handful of games was sorely missed as Liverpool lacked cutting edge and struggled to break down their opponents.  The fullback’s willingness to run at opponents and his brilliant off-the-ball running shows that he is still one of the best fullback in the Premier League when fit. 7) Damien Duff (Fulham) The first half of 2009 was forgettable for Damien Duff. He was part of the expensively assembled Newcastle team that played so much below their strength that they were relegated to the Championship.  Duff struggled to show glimpses of his past form while playing for Blackburn and Chelsea and even ended up playing as a left back towards the end of the season. Duff also played his part in the crucial relegation decider against Aston Villa by scoring the deciding own goal that sent Newcastle down. However, since joining Roy Hodgson at Fulham, Duff has found his scoring boots and scored 5 goals in 21 appearances and has once again regained his reputation as one of the best wingers in the game.  6) Joe Hart (Birmingham City) Displaced last season by Shay Given at Man City, Joe Hart joined Birmingham City this season on a year-long loan deal. Much was expected from this hugely talented but relatively young goalkeeper (still age 22) who is touted by many as a future full England international. Hart started the season between the sticks for Birmingham, but a couple of high profile errors and veteran goalkeeper Maik Taylor’s clean sheet against Manchester City in a game which Hart was ineligible, left manager Alex McLeish with a dilemma. His decision to stick with Hart in goal paid dividends however, as Hart gained confidence in subsequent games and help guide Birmingham to a club-record 12-match unbeaten run in the top division. His performances have prompted many pundits to rank him as a surprise contender for a ticket to South Africa this summer with the England squad.  5) Ivan Klasnic (Bolton Wanderers) Yet another value-for-money deal. Croat Ivan Klasnic joined Bolton Wanders on transfer deadline day on a year-long loan deal from French club FC Nantes and has quickly established himself as a firm fan favourite. Klasnic has repaid the faith shown by Bolton by scoring 6 times in 17 appearances for them. What is even more amazing about Klasnic was the fact that Klasnic recovered from not one, but two kidney transplants. His successful battle against kidney failure has also made him a shining example for others battling the same illnesses.   4) Thomas Vermaelen (Arsenal) Being the only summer signing for Arsenal this season and costing a hefty initial fee of €10 million, Thomas Vermaelen had big shoes to fill to try to shore up an Arsenal defence which had been accused of lacking height. The Belgian defender not only managed to ease into a new found partnership with William Gallas comfortably, but also managed to score 7 goals in all competitions in the process, making him the fourth highest goal scorer in the club.    3) Stephen Hunt (Hull City) Hull City escaped relegation last season by the skin of their teeth and it was by no means due to their own prowess, but rather Newcastle’s ineptness that allowed them to continue to punch above their weight again in the Premier League this season. Hull City’s lack of bite in front of goal has been well documented and the addition of clumsy young American striker Jozy Altidore and veteran Jan Vennegoor of Hesselink this season has failed to quell their inadequacy. Cue £3.5million signing Stephen Hunt from relegated Reading to the rescue. Hunt, who plays as a winger or an attacking midfielder, has scored 6 goals from 24 appearances for the Tigers this season (more than the above 2 strikers combined) and has been a vital part of the Hull team that is still somewhat not surprisingly languishing around the relegation zone. However, such is his importance that Hull has rejected a £5 million bid from fellow strugglers Wolverhampton Wanderers in the January transfer window.  2) Lee Bowyer (Birmingham City) Who? Once one of the brightest teenagers in the country and a potential England international at Leeds United along the likes of Jonathan Woodgate, Lee Bowyer lost his way a little after discipline and injury problems during spells with West Ham and Newcastle United. He spent the last 3 seasons at Upton Park playing a bit part role and scoring only 4 times in 41 appearances for the Hammers. At 33 years old, he was signed up by Alex McLeish this season on a free transfer from West Ham and one would think that it was with the intention of having him as a backup player for him to spend his twilight years in football. However, Lee Bowyer seemed to have rejuvenated himself and secured a place in the starting 11, scoring 5 goals in the process and helping Birmingham to their best ever Premier League unbeaten run of 12 games. Kudos for Alex McLeish for one of the best value-for-money signings so far this season.  "Are you watching, Old Trafford?" 1)  Carlos Tevez (Manchester City) Frustrated at not getting enough playing time at Old Trafford, Carlos Tevez became a select few to make the short walk across Manchester to join their fiercest rivals, Manchester City in a rumoured £25.5 million deal in summer. Rumours about Manchester United not willing to pay the asking fee for Tevez and talk that Tevez is not worth his transfer fee by his ex-Manchester United teammates has spurred Tevez on. He has responded in kind by having arguably his best season in British football. His eagerness to impress was epitomised during the Carling Cup semi-final against bitter rivals Manchester United, although his 3 goals in 2 games were not enough to get Manchester City into the final. However, a dividend of 18 goals in 25 matches in all competitions for Tevez has shown that he is in fact worth every single penny of his transfer fee unlike some of his multi-million dollar teammates. ________________________________________________________________________________________ The editorial team will like to seek the opinion from all  readers on what you think. Do you agree with the Top 8? Is there anyone that you feel is more worthy to be on the list? Leave a comment! If there is something that you will like us to feature as part of this top 8 series please leave a comment and our team will try to accomodate!  Read More →