BUSINESS BRIEFS
Madoff investor commits suicide in N.Y. office
Associated Press
NEW YORK — The founder of an investment fund that lost $1.4 billion with Bernard Madoff was discovered dead yesterday after committing suicide at his Madison Avenue office, marking a grim turn in a scandal that has left investors around the world in financial ruin.
Rene-Thierry Magon de la Villehuchet was found sitting at his desk at about 8 a.m. with both wrists slashed, New York Police Department spokesman Paul Browne said. A box cutter was found on the floor along with a bottle of sleeping pills on his desk. No suicide note was found.
De la Villehuchet was one of several fund managers to be hit hard in Madoff's alleged $50 billion Ponzi scheme. Investment funds that lost big to Madoff are also facing backlash and investor lawsuits for not protecting their clients from the alleged fraud.
92 MORE BANKS GET TREASURY AID
WASHINGTON — The Treasury Department says it has provided an additional $4.7 billion to 92 banks as part of the government's $700 billion rescue of the financial system.
The department released a list of 49 banks that got final approval last Friday to receive $2.8 billion.
It said an additional 43 banks received final approval yesterday, but those names will not be released until Monday.
Treasury also confirmed that it had given preliminary approval to American Express Co. and CIT Group to receive support from the $700 billion bailout fund.
OIL PRICES NEAR $39 A BARREL
Oil prices dipped below $38 a barrel yesterday on fresh evidence of weakness in the U.S. housing market and a shrinking gross domestic product that suggests the recession may be worsening.
Light sweet crude for February delivery fell 93 cents to settle at $38.98 on the New York Mercantile Exchange after dipping to $37.79 earlier in the day.
Prices have fallen 73 percent since July, with massive job layoffs and weak consumer spending eating away at energy use.
CARD COMPANY POSTS 3Q LOSS
PORTLAND, Ore. — American Greetings Corp. shares sank to their lowest price in 21 years yesterday after the greeting card company reported that it swung to a loss in its third quarter due to hefty charges and lower sales in the tough economy.
American Greetings posted a loss of $193.3 million, or a loss of $4.25 per share, compared with a profit of $29 million, or 52 cents per share, last year.
WELLS FARGO OK TO BUY WACHOVIA
NEW YORK — Wells Fargo & Co. and Wachovia Corp. shareholders yesterday voted to approve Wells Fargo's $11.8 billion purchase of Wachovia.
The combination creates one of the nation's largest banks. A combined Wells Fargo and Wachovia will have more than $1.42 trillion in assets and nearly $800 million in deposits, with operations in 39 states and Washington, D.C.
WAL-MART SETTLES WAGE LAWSUIT
PORTLAND, Ore. — Wal-Mart Stores Inc., the world's largest retailer, said yesterday it will pay as much as $640 million to settle 63 lawsuits over wage-and-hour violations, ending years of dispute.
The discount retailer, which has more than 1.4 million employees, said the amount it pays will depend on how many claims are submitted by eligible workers.
The agreement the company announced yesterday ends the vast majority of such cases against Wal-Mart. Each settlement still must be approved by a trial court.
The company declined to discuss the case further.
Shares in Wal-Mart, which rose 70 cents to close at $55.29 before the settlement was announced, rose 21 cents further in after-hours trading.
