BUSINESS BRIEFS
Ousted CEO will testify on Merrill bonuses today
Advertiser News Services
CHARLOTTE, N.C. — A New York judge is ordering former Merrill Lynch CEO John Thain to testify about bonuses paid to Merrill employees before the company was sold to Bank of America.
New York Attorney General Andrew Cuomo filed a motion in the state's Supreme Court yesterday asking that Thain be compelled to provide details on the bonuses, which he had declined to give during a deposition last week. Thain's spokesman said later yesterday that the motion was granted and Thain will answer the questions today.
Thain said last week he had been told by Bank of America not to divulge details about them.
Thain was dismissed from the combined company last month after news broke that Merrill paid $3.6 billion in bonuses before it completed its sale.
DEAL REACHED ON FORD TRUST FUND
DETROIT — The United Auto Workers and Ford Motor Co. said yesterday they agreed to let the automaker change how it pays for a healthcare trust fund for retired workers, a deal that could serve as the model for cash-starved General Motors Corp. and Chrysler LLC.Ford said the agreement allows it to make payments to the union-managed trust with up to 50 percent of company stock instead of cash. Having the UAW take equity frees up cash for operations.
Ford, like its Detroit and foreign competitors, is seeing a huge drop in sales as consumers shy away from purchasing new cars during a recession. However, the company has not asked for low-interest government loans. General Motors and Chrysler have asked for a total of $39 billion, and have received $17.4 billion so far.
For Ford, which isn't receiving government aid but is trying to cut costs, the agreement announced yesterday is another in a series of concessions from auto workers.
RATTNER TO ADVISE ON AUTO INDUSTRY
WASHINGTON — The White House selected a Wall Street financier yesterday to advise Treasury Secretary Timothy Geithner on the restructuring of General Motors Corp. and Chrysler LLC.Steven Rattner, co-founder of Quadrangle Group LLC, will serve as counselor to Geithner, who is leading an auto industry task force charged with shaping the future of GM and Chrysler.
Rattner had been a leading candidate to become the so-called "car czar."
But President Obama decided instead to create a task force led by Geithner and White House economic aide Larry Summers to review $17.4 billion in federal loans to GM and Chrysler and their requests for billions more in aid.
Quadrangle Group said yesterday that Rattner was leaving his role as managing principal of the firm to take the treasury position.
RULING ON SECRET ACCOUNTS DELAYED
MIAMI — A federal judge decided yesterday it will take months to determine if and when the Internal Revenue Service will learn the identities of 52,000 wealthy Americans who have secret accounts at Swiss bank UBS AG.U.S. District Judge Alan S. Gold set a July 13 hearing on the IRS lawsuit, unless an agreement is reached first. UBS claims that turning over the account names would violate Swiss privacy law and jeopardize the bank's license to stay in business.
The IRS had sought an accelerated timetable, but a Justice Department tax attorney and UBS lawyers told Gold at a brief telephone hearing yesterday that they had agreed on a lengthier process.
Gold also set a series of deadlines for court filings.
