3XSQ: BofA posts slim profit; Citi ex-CEO exits after clash
Wednesday, October 17, 2012 - 04:22
Oct 17 - Bank of America eked out a Q3 profit after taking a $1.6 billion litigation charge; Citi CEO Pandit exits abruptly after a board meeting argument.
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Ahead -- under scrutiny end. -- and new idea. Later in the show. Think I'm Chris Wednesday from Reuters world headquarters in New York. Brian join -- still trying to get Bank of America out of the hole that went into as a result of the financial crisis. Be a day taking one point six billion dollars in the litigation charges for the quarter. What's that related to a settlement over claims related to its acquisition of Merrill Lynch. Overall the bank posted a slight profit when a loss was expected but the gains weight below a year ago. Shares climbed about ten bucks earlier this year. But below that now but well off their lows. At least my hand won't see himself compared to another struggling CEO anymore that being Vikram Pandit who departed Citigroup. The focus they are moving to our power player of the day Michael -- Citi chairman. Sources say Pandit announced his resignation after -- criticized him for being too detached from its day to day operations. Tensions between the two had been growing since O'Neal took over the board's top post in April according to those sources. Another leader taking heat is -- ingenuity. Shareholders among those expressing displeasure with her for the performance of the soft drink and snack -- stock since she took over. There would have had a nice run this year today PepsiCo posting a profit that topped expectations that fell from a year earlier. And also reaffirmed his guidance for this year shares near their -- twelve high above 73 dollars hit in August. And speaking of leaders under pressure the wheels have come off for Lance Armstrong. After stepping down as chairman of -- strong yesterday Armstrong now dropped by major sponsor Nike. Nike saying in statement on its website that it has terminated Armstrong contract did -- quote. Seemingly insurmountable evidence that he participated in doping and quote. Miss led Nike for more than a decade. From leaders under fire to a company gaining unwanted attention. Trachsel well we'll joins us from London axle went about Starbucks in the UK UN spoke about this earlier this week with. The update there. Well it's it's getting guys -- -- -- -- sort present both the government and the opposition as wade into this debate itself on the back -- Tom -- report he's a reporter for Reuters from about Reuters reported just a couple of days ago that Starbucks. Has on the one -- been telling investors that its UK unit is highly profitable. While on the -- and telling authorities the unit has lost my team well there -- shown us now the company may face an inquiry. -- senior member of the British parliament cold for an investigation. Into its tax dealings. As I mentioned on Monday there is absolutely no evidence that Starbucks has been engaged in any wrongdoing but so what we can expect -- Lisa. Is that there's going to be a motion tabled in parliament asking the government to launch its own investigation into Starbucks. And potentially other big companies paying minimal taxes. On launch revenues. That of course could ultimately lead to a change and taxed or so. Yes since this came out on Monday. This story does seem to be picking up steam in fact that somebody in the reporter has been all over the UK media talking about this story in the -- time. Lots of things percolating there sorry thank you sell. From a high tech to home that Israeli entrepreneurs building bicycle from recycled cardboard. Put -- this so called secret recipe of organic materials that make them -- fireproof. Agreeing bikes are the latest environmentally friendly way to get from point -- -- point speed. What -- that distance is ten feet or ten miles we don't know but we did note that the bikes cost less than ten bucks a pop to party. Not bad economic times. That's the latest of three times where this Wednesday you can follow us on Twitter at lakers insider and check out our way that he is now at Reuters dot com slash.
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