Rogue Trader Costs UBS $2Billion
A 31-year-old man has been detained in London after Swiss banking giant UBS announced the rogue trader had cost the bank an estimated $2 billion in unauthorized trading, CNN reports. The loss could result in the bank recording a loss in the third quarter this year. UBS shares were down about 5 percent two hours after the loss was announced, CNN said. The bank said that no client positions were affected by the loss, which is under investigation. The loss would be among the largest costs ever to a bank in unauthorized trading.
Facebook Delays IPO Until 2012
Facebook will delay its initial public offering until the end of next year so employees can focus on developing products for the world's leading social networking website, the Financial Times reported. Facebook plans to go public at the end of 2012, a later public debut than it originally planned. Chief executive Mark Zuckerberg wants to delay the IPO, which is expected to be one of the biggest in history, until next September or later so employees can stay "focused on product developments rather than a pay-out." The decision was not related to market conditions, the paper said. Facebook's revenue doubled to $1.6 billion in the first half of 2011, other sources told Reuters.
U.S. Turns Heat Up on BP for Oil Spill
In its final assessment of last year's Gulf disaster, The United States assigned most of the blame for the country's biggest ever oil spill on BP. This report offered the most comprehensive glimpse into the government's official view on the causes of the Gulf oil spill, Reuters reported. The Coast Guard and the offshore oil regulator concluded that BP was solely to blame for 21 of 35 contributing causes--and shared eight more--to the Deepwater Horizon explosion that killed 11 workers and spewed more than 4 million barrels of oil from the Macondo well into the sea.
"Economic Danger Zone"
World Bank President Robert Zoellick said the world had entered a new economic danger zone and Europe, Japan and the United States all needed to make hard decisions to avoid dragging down the global economy, Bloomberg reported. Speaking at George Washington University, Zoellick said that Europe, Japan and the United States must "face up to responsibilities" or they will risk dragging down the global economy. Zoellick's speech underscored growing fears about the escalating sovereign European debt crisis, which will be the focus of meetings next week in Washington of global finance and development leaders.
DuPont wins Lawsuit
DuPont, the US chemicals group, won a $919 million civil lawsuit against the South Korean company Kolon Industries. A jury sided with DuPont that Kolon had stolen trade secrets relating to Keviarm one of DuPont's best-known products and which is the material used in bulletproof vests. DuPont successfully argued that Kolon Industries had repeatedly and successfully attempted to get access to confidential information relating to the production of Kevlar by hiring former DuPont workers. Thomas Powell, president of DuPont Protection Technologies, said: “We have spent over 40 years and billions of dollars developing the Kevlar franchise and we are absolutely committed to defending that for the future for our customers, employees and our shareholders.”
Solyndra Loan Questions
New questions are being raised about the White House's involvement in a 2009 loan to solar energy company Solyndra Inc. of California, which filed for bankruptcy late last month and put more than 1,000 people out of work. Solyndra received loan guarantees of $535 million funded by the 2009 stimulus bill pushed by President Barack Obama, who touted the company in a visit last year, CNN reported. Last week, agents from the Department of Energy and the FBI raided Solyndra's headquarters, suggesting the DOE is investigating allegations of fraud. In a memorandum released yesterday, the House Energy and Commerce Committee asked how the Department of Energy and Office of Management and Budget "ignored red flags in their rush to spend stimulus dollars" by backing the loan guarantees for Solyndra.