June 22, 2025

Business Briefing | Finance: Severance of $2 Million for Departing Bank Chief

Bank of New York Mellon has agreed to pay its departing chief executive, Robert P. Kelly, severance of $2 million, according to a statement filed Friday with the Securities and Exchange Commission. The bank said Mr. Kelly was also eligible for up to $4 million in compensation based on the bank’s performance this year and $11.2 million from vested equity awards. Mr. Kelly is also entitled to a pension currently valued at $16.6 million, Bank of New York said. The bank said it would take a charge of $22 million in the third quarter to account for the compensation. Mr. Kelly stepped down late Wednesday because of “differences in approaches to managing the company,” the bank said.

Article source: http://feeds.nytimes.com/click.phdo?i=7a113b13cd124bb7ea9376b75c09046f

G.M. Sees Cost Cuts Continuing for Years in Effort to Sustain Long-Term Growth

G.M. executives said that they intended to cut the number of different platforms and engines used in the company’s vehicle lineup roughly in half within the next decade.

By 2018, G.M. will use 14 different platforms globally, down from 30 last year. A platform is the basic underpinnings of a vehicle, and building multiple vehicles on a single platform reduces development and production costs.

The executives also said G.M. was working to eliminate wasted spending on new products by keeping its investments more stable from one year to the next, rather than trying to follow the ups and downs of the market

“The start-stop, herky-jerky, on-again, off-again product development was grossly inefficient,” the chief executive, Daniel F. Akerson, said, “and it resulted in poor product.”

The plans, outlined at an analyst conference that G.M. organized at its Detroit headquarters, call for using 12 engine families by 2018 and eventually just 10, compared to 20 in 2009.

Daniel Ammann, the chief financial officer, said G.M. had been putting about $1 billion a year into projects that were later canceled.

Last week, G.M., which is 26 percent government-owned, reported that it earned $5.4 billion in the first half of the year as second-quarter earnings grew 89 percent. Its profit margins have increased as a result of higher revenue as well as wrenching cost cuts that included closing many plants and eliminating tens of thousands of jobs.

On Tuesday, the company said that its annual manufacturing labor costs in the United States had fallen by $11 billion since 2005. The executives added that they were working to keep labor costs under control, even as demand for G.M. vehicles increased.

Diana Tremblay, G.M.’s global chief manufacturing officer, said the company did not need to add plants anytime soon, even though its capacity utilization rate — a measure of how fully and efficiently plants are used — was near 100 percent. G.M. is particularly hesitant to add production capacity in the United States during a time of such volatile economic and market conditions. Ms. Tremblay said that G.M. could meet demand largely by adding shifts, running plants on overtime and finding creative ways to run existing plants more efficiently.

Leaders of the United Automobile Workers union, which is negotiating a new contract with G.M., could have a difficult time persuading the automaker to reopen idled plants in Tennessee and Wisconsin. They are also trying to prevent the planned closing of a plant in Louisiana, a top priority during the talks.

Mr. Akerson expressed some doubt about whether total industry sales across the country would reach 13 million vehicles this year. G.M. and other automakers had generally projected sales between 13 million and 13.5 million, up from 11.6 million in 2010; from January through July, the industry sold 7.4 million vehicles.

“There’s a lot of turmoil in the business and turmoil means uncertainty,” Mr. Akerson said, “so we’re a little unsure of these numbers.”

Article source: http://feeds.nytimes.com/click.phdo?i=96c18267dbfc88b1386f7a684d0c7ac1

DealBook: Berkshire Unit Bids $3.25 Billion for Transatlantic

4:44 p.m. | Updated with statements from Validus and Allied

A division of Warren E. Buffett’s Berkshire Hathaway waded into the fight for Transatlantic Holdings, bidding $3.25 billion in an attempt to top competing offers from two other insurers.

Berkshire’s National Indemnity is offering $52 a share, Transatlantic confirmed in a statement on Sunday. That is a nearly 15 percent premium to Transatlantic’s Friday closing price.

“With your stock trading at $45.83, I have to believe that you will find our offer to buy all of Transatlantic shares outstanding at $52.00 per share to be an attractive offer,” Ajit Jain, the head of Berkshire’s sprawling reinsurance operations, wrote in a letter to Transatlantic’s chief executive, Robert Orlich, on Friday.

Berkshire’s bid is also well above the current values of the two outstanding offers for Transatlantic. The stock-and-cash bid by Validus Holdings was worth about $2.9 billion as of Friday’s close. The bid was worth nearly $3.5 billion when it was first announced.

An all-stock merger with Allied World Assurance, which Transatlantic had already agreed to, was worth about $2.76 billion. It was originally worth about $3.2 billion.

The brief letter from Mr. Jain gave few details about Berkshire’s proposal, other than a $75 million breakup fee payable to National Indemnity if the two strike an agreement but do not close a deal before Dec. 31. Mr. Jain added that he expected to hear a response by the close of business on Monday.

Berkshire did not specify what form its offer would take. But in keeping with the insurance conglomerate’s proclivities, it would likely be an all-cash offer.

Even at $3.2 billion, Berkshire’s offer is well below Transatlantic’s book value of $4.2 billion. And if it is all-cash, it would offer Transatlantic shareholders no upside if the combined company improves financially.

Transatlantic said in its statement that its board will “carefully consider and evaluate the proposal” from Berkshire. But it is unclear whether, with two offers already on the table, the Transatlantic board can reach a decision on the latest offer by Berkshire’s deadline.

Should Transatlantic agree to a deal with Berkshire, it would be liable for a $115 million breakup fee payable to Allied.

Validus has already taken its bid directly to Transatlantic’s shareholders, hoping to persuade them with both a higher price and the promise that it will create a well-balanced company with a big presence in reinsurance.

That prompted strong opposition from Transatlantic, which rejected the bid and filed a lawsuit against Validus, arguing that the unwanted bidder made misleading statements about its offer to shareholders.

Validus’s chief executive, Edward J. Noonan, has promised to wage a lengthy fight for Transatlantic.

Meanwhile, Allied — which made the first bid for Transatlantic — is arguing that its merger proposal would create a diversified operation, including a specialty insurance business.

So far, shareholders of both Validus and Allied appear unimpressed with either company’s campaign for Transatlantic. Shares in Allied have tumbled more than 13 percent since the insurer unveiled its merger proposal in June, while those in Validus have fallen 11 percent since making its hostile bid last month.

In a statement on Sunday, Validus again urged Transatlantic to hold merger talks without what it called restrictive conditions, including a limit on stock ownership.

Allied said in a statement that it remained committed to its merger with Transatlantic and derided the Berkshire offer as “opportunistic.”

Berkshire’s bid follows the company’s rosy earnings report on Friday, in which it disclosed $3.42 billion in profit for the second quarter this year, topping analyst predictions. Earlier this week, Allied announced that it earned $93.8 million in its second quarter, beating analyst estimates. Two weeks ago, Validus reported $109.9 million in net income for the quarter, matching analyst expectations.

Transatlantic is being advised by Goldman Sachs, Moelis Company and the law firm Gibson, Dunn Crutcher.

Allied is being advised by Deutsche Bank and the law firms Willkie Farr Gallagher and Baker McKenzie. Validus is being advised by Greenhill Company, JPMorgan Chase and the law firm Skadden, Arps, Slate, Meagher Flom.

Article source: http://feeds.nytimes.com/click.phdo?i=ecb30f875f2c5709e738210a89418a91

Boeing to Decide This Year Whether to Revamp or Replace 737 Jet

Pressure on Boeing to define its future strategy for the fast-selling 737 has been building since late last year, when its European rival, Airbus, announced that it would bring to market by mid-2016 an updated version of its A320 single-aisle jet, with new engines and a more aerodynamic wing. Boeing plans delivery of its new engine design or new jet around 2020.

Airbus has since lined up more than 200 firm orders for the A320neo — the letters stand for new engine option — with potential orders from customers to buy as many as 200 more.

Industry executives expect Airbus will have orders for well over 500 of the planes by the end of the Paris Air Show, which begins Monday.

“That’s going to be no surprise to us,” James F. Albaugh, the chief executive of Boeing Commercial Airplanes, said at a briefing with reporters on the eve of the show.

He defended Boeing’s caution, saying that the company preferred to be guided by airline customers rather than by competitors.

“What we have to make a judgment on is what is the best thing for us to do to support our customers,” Mr. Albaugh said.

“Is it to improve an already good airplane — which is lower risk — or to do a higher risk, new airplane, which will provide a new airplane not just for this decade but an airplane for the next 50 years?” he asked. “That’s what we’re trying to balance.”

Airbus has been promising fuel savings with the A320neo of as much as 15 percent over current engines. The new plane also is expected to run more quietly, with lower operating costs, and to be able to fly farther or carry heavier payloads while emitting less greenhouse gas.

Airbus says it expects to spend around $1.5 billion on the enhancements, and Boeing has placed the cost of redesigning the engine of the 737 in that range. Developing an all-new replacement for the 737 most likely would cost Boeing as much as $12 billion, analysts estimate.

Article source: http://feeds.nytimes.com/click.phdo?i=fcee10b03bcf374022db0697d854d5c9

Bits: Google vs. Groupon

Last year, Google tried to buy Groupon but failed. So Google now hopes to beat Groupon.

Eric E. Schmidt, Google’s executive chairman, said Tuesday that the company would begin testing Google Offers, a Groupon-like service delivering discounts from small businesses, starting on Wednesday in Portland, Ore. The test will be expanded to San Francisco and New York this summer.

As the company indicated earlier this month, Google Offers will be tied to Google Wallet, a mobile application that allows people to use their phone to pay for purchases. Stephanie Tilenius, vice president for commerce at Google, said the company would not charge customers or retailers for the Wallet application or for payments, but will monetize the service by taking a cut of offers or coupons that people buy.

Ms. Tilenius admitted that Google Offers would compete with several other “deals” services, but said that it was the only one combining offers with mobile payments, making it easier to use.

The announcement of the Portland test was part of Mr. Schmidt’s on-stage interview at the AllThingsD conference in Rancho Palos Verdes, outside of Los Angeles. During the wide-ranging interview, Mr. Schmidt took responsibility for Google’s failure to recognize the importance of social networking.

Mr. Schmidt said that four years ago, he wrote memos about the importance of social identity, but failed to act on them. He said that he repeated the same mistake three years ago.

“I clearly knew I had to do something and I failed to do it,” he said. “I screwed up.”

Mr. Schmidt said that under its co-founder Larry Page, who became chief executive in April, Google reorganized itself to focus more directly on seven product areas. He said he hoped that the new organization would help the company to avoid similar mistakes and to operate faster.

Article source: http://feeds.nytimes.com/click.phdo?i=0a216f655e2bc4c255adabea1fdc3877

Fine Print Blurs Who’s in Control of Online Photos

World Entertainment News Network, a news and photo agency, announced this month that it had become the “exclusive photo agency partner” of Twitpic, a service with over 20 million registered users that allows people to upload images and link to them on Twitter. The deal allows the agency to sell images posted on Twitpic for publication, and to pursue legal action against those who use such images commercially without its permission, according to the agency.

“There has been much unauthorized use of Twitpic images which we shall be addressing without delay,” said Lloyd Beiny, the agency’s chief executive.

World Entertainment News, whose photo business revolves largely around shots of celebrities, says it is interested only in the photographs posted to the accounts of people like Britney Spears, Russell Brand and Demi Moore. But the scope of the deal is not clear, and professional photographers are worried that it could allow the agency to profit from any photo posted to Twitpic. Others say Twitpic’s move shows the tenuous control people have over what they post through Internet services.

The extent of that control is typically laid out in the terms of service that users agree to when they sign up for Internet services and smartphone applications. But the more such services people use, the harder it becomes to keep track of the things to which they are agreeing. And of course many terms of service, which are heavy on legal language, include clauses that assert the company’s right to change them without notice.

In a recent episode, the television show “South Park” poked fun at the tendency to consent to such agreements without reading them, when one character discovered that he had inadvertently given Apple the right to surgically transform him into a “product that is part human and part centipede, and part Web browser and part e-mailing device.” In the real world, there has been more discussion of what users could be risking than concrete examples of problems. Much attention has been centered on privacy concerns and the confusing aspects of companies’ privacy policies.

Professional photographers in particular have worried about their work being distributed in ways they would not approve. Protests over changes to Facebook’s terms of service in 2009, which seemed to give it rights to users’ content even if they discontinued their accounts, caused the company to change its copyright language.

The Free Software Foundation, a digital rights group, recently raised concerns over Nintendo’s 3DS, a hand-held gaming device that can take photos. In the terms of service, Nintendo claims the right to use content from its customers’ devices in a variety of ways, including marketing materials. In a statement, Nintendo said that it did not gain access to user content without permission, and that its terms of service were “consistent with industry norms.”

The agreement between Twitpic and World Entertainment News, said Dan Bailey, a professional photographer from Alaska, provided a solid example of what people have been worried about.

“The agreements always make people nervous, but nothing was done with them,” Mr. Bailey said. “But for a company like Twitpic to come along and say that they can sell your photos, that’s unreasonable.”

Twitpic did not respond to multiple requests for comment, and neither company has made the details of the agreement public. Mr. Beiny said in an e-mail that the deal covered only the accounts of several hundred celebrities. He declined to comment further.

World Entertainment News forged a similar deal this year with Plixi, a smaller online photo service. In an interview with the magazine Amateur Photographer, Mr. Beiny claimed a right to all photographs uploaded to the service. He told the magazine that though World Entertainment News might try to sell “extraordinary” photographs of any kind, its primary interest was celebrities. The deal was terminated when Plixi was acquired by Lockerz, which said it was uncomfortable with the concept.

World Entertainment News would not say whether it intended to pay celebrities for their Twitpic photos or how they might opt out. A representative for “The Ellen DeGeneres Show” said that Ms. DeGeneres, a regular Twitpic user, had not been consulted about the agreement. She added that Ms. DeGeneres would stop using the service.

An alternative site, WhoSay, sprang up last year to let celebrities retain greater control of the material they post to social media sites. Twitpic’s terms of service say the site’s users retain ownership rights to the content they upload. But it also claims “a worldwide, nonexclusive, royalty-free, sublicenseable and transferable license to use, reproduce, distribute, prepare derivative works of, display, and perform the Content in connection with the Service and Twitpic’s (and its successors’ and affiliates’) business.” The terms do not distinguish between the rights of celebrity and noncelebrity users.

Though Twitpic is the most popular service for posting images to Twitter, several others exist, including Posterous, yfrog and Twitgoo.

Carolyn E. Wright, a lawyer who writes a blog about legal issues related to photographers, said there were significant differences among the policies of Internet services. Users simply have to read the agreements they are clicking on, she said.

“You’re acknowledging those terms of services, you’re bound by them,” Ms. Wright said. “Even if you don’t read them.”

Article source: http://feeds.nytimes.com/click.phdo?i=41e450f60a2a7c1fb43a6ec4205b9bb1

Media Decoder: Live Nation Teams Up With Groupon Amid Worries About Concert Season

Live Nation Entertainment, the world’s biggest concert promoter, is teaming with the popular coupon site Groupon to sell discounted tickets.

The companies announced on Monday that they had formed a joint venture, GrouponLive, which, like Groupon, will offer consumers discounts on tickets for limited periods of time. GrouponLive is to become operational “in time for the summer concert season,” the companies announced. Terms of the deal were not disclosed.

For Live Nation, the arrangement could be a convenient way to help fill up its amphitheaters and sidestep criticism. Last year, with concert attendance off by 9.4 percent, some shows in its amphitheaters — a major part of its summer touring business — were canceled, and at others employees in sandwich signs sold tickets at fire-sale prices. That heavy discounting was criticized by many artist managers, who felt that steep discounts at the door seemed to devalue their artists.

“Our success is based on selling tickets and filling seats and GrouponLive gives us another platform to achieve this,” Michael Rapino, Live Nation’s president and chief executive, said in a statement.

In the usual economics of a concert tour, most of the face value of a ticket goes to the artists, and the promoter makes its profit on ancillaries like parking and concessions. Live Nation owns or controls 48 amphitheaters in North America.

Groupon, founded in 2008, is said to be planning an initial public offering that would value the company at $15 billion or more.

Article source: http://feeds.nytimes.com/click.phdo?i=94a81bbe323cead691d952f31cc986dd

BlackBerry Maker Cuts Its Forecast

That defense is not looking so solid. RIM, the maker of BlackBerry phones, lowered its profit forecast for the current quarter by 11 percent on Thursday, sending its stock down more than 10 percent in after-hours trading.

The announcement followed a less-than-positive reception for the company’s first tablet, the BlackBerry PlayBook, which was released this month and was meant to be an answer to Apple’s popular iPad. Critics found that while the device had merits, it was shipped without several important features and was troubled by minor software problems, suggesting that it was a rushed job.

During a conference call with analysts, Jim Balsillie, the co-chief executive of RIM, said PlayBook sales were within the company’s expectations, but he did not provide any specific figures.

Mr. Balsillie attributed the earnings downgrade to a problem that was the opposite of the PlayBook’s: delays in introducing new BlackBerry phones. While the company said sales of lower-margin, less costly BlackBerry phones remained strong, sales and shipments of its more profitable flagship models were swiftly declining in the United States and Latin America.

Mr. Balsillie said that next week the company would unveil a variety of new phones at its annual trade show that would allow it regain market share against the iPhone and phones running Google’s Android software in the high end of the market.

“The entry-level products do a fine job for us,” Mr. Balsillie said. “But we also need these higher-end, newer products and we need them in the market.”

RIM, which is based in Waterloo, Ontario, said it expected to post diluted earnings of $1.30 to $1.37 a share when the quarter comes to a close at the end of May. Late in March, it forecast profits of $1.47 to $1.55 a share.

Shaw Wu, an analyst with Sterne Agee in San Francisco, said RIM’s sales in the United States had fallen for five consecutive quarters. Growth in overseas markets and in Canada, he said, had been offsetting that trend.

“Now we’re concerned that the international growth will start to slow,” Mr. Wu said.

At one point Mr. Balsillie gently mocked critics who found the PlayBook to not be “all polished” and argued that no one had disputed the potential capabilities of the device.

The PlayBook introduced a new operating system for RIM that allowed it to make devices with features similar to those found on the iPhone and iPad while also supporting Adobe Flash, software which is widely used for video on the Web but is not supported by Apple’s mobile products.

RIM plans to use that operating system in its new phones, something which Mr. Balsillie suggested was a factor in the delays.

Mr. Wu said that while he expected RIM to again offer competitive products, re-establishing the company’s former prominence in the smartphone market would be difficult and take time.

“When you do a transition like this, it creates hiccups,” he said.

Shares of RIM rose 1.8 percent to close at $56.59 in regular trading. In after-hours trading, it dropped as low as $50.21.

Article source: http://feeds.nytimes.com/click.phdo?i=f8228078cff5059b123011f7c1857c76

Profit Down At Times Co., But Web Plan Shows Upside

The company said net income fell 57.6 percent, to $5.4 million, compared with $12.8 million in the quarter a year ago.

The weakness in print advertising, coupled with an unexpected drop in revenue at About.com, led to earnings of 4 cents a share before special items were excluded, compared with 8 cents a share in the period a year ago.

The Times did report growth in one significant area. In the first glimpse at how its digital subscription plan is faring, the company said it had signed up more than 100,000 subscribers since March 28, when it began limiting the number of articles that visitors to NYTimes.com could read free. While it said the program was still too young to be declared a success, early signs indicated that readers were responding well.

“While the advertising marketplace remains challenging, we are confident the path we have been pursuing to transform our company is the right one,” Janet L. Robinson, chief executive of the Times Company, said in a conference call with analysts on Thursday.

Full-price digital subscriptions start at $15 and renew every four weeks, but most subscribers have paid a discounted introductory rate of 99 cents for four weeks of access. The number of subscribers who have renewed at full price has been strong so far, Ms. Robinson said.

She said The Times had also noticed an increase in subscriptions to the print edition of the paper, which she said was a result of print subscribers receiving free digital access. Traffic to NYTimes.com, which the company had estimated could drop by around 15 percent once it started charging for access, has been on par with expectations, she added.

The Times’s results did not reflect any revenue from the start of the online subscription model, which began after the first quarter ended. The company said it expected to see a positive impact from digital subscriptions in the second quarter.

First-quarter revenue at the Times Company dropped 3.6 percent, to $566.5 million in the first quarter. Total advertising revenue declined 4.4 percent, but the performance by company sector varied widely. At The New York Times Media Group, which includes the namesake paper, NYTimes.com and The International Herald Tribune, the decline was 1.9 percent.

Digital advertising across the company grew 4.5 percent. As a percentage of the company’s total advertising revenue, digital was 28 percent, up from 25.6 percent a year earlier.

At the New England Media Group, which includes The Boston Globe, advertising revenue fell 5.1 percent. At the Regional Media Group, which includes local newspapers from Florida to California, the decline was 9.7 percent.

At About.com, which experienced a loss in visitors after Google adjusted its algorithms to filter search results with more precision, revenue dropped 10.2 percent.

Advertising at traditional media sectors has generally bounced back since the end of the recession, but newspapers, at least the print products, have been left out of the rebound. According to the Newspaper Association of America, advertising revenue across the industry declined 6.3 percent in 2010, to $25.8 billion, despite 11 percent growth in digital advertising. According to Nielsen, the media research company, advertising on cable television was up 13.9 percent in 2010, to $27.4 billion. Network television advertising grew 5.9 percent, to $25.6 billion. National magazines advertising grew 4 percent. “Newspapers are suffering from market share loss, the perception that the number of eyeballs are decreasing and the perception that newspaper advertising is expensive relative to other media,” said Doug Arthur, a managing director of Evercore, an advisory and investment firm.

Operating costs at the Times Company were essentially flat at $535.4 million. Rising newsprint costs continued to weigh on the company. They rose 12.7 percent, offset partly by other factors, including a drop in circulation. Circulation revenue fell 3.7 percent, to $228 million.

The company ended the quarter with $352 million in cash and short-term investments, a lower amount than at the end of 2010 because of $54 million in pension contributions.

Article source: http://feeds.nytimes.com/click.phdo?i=6fe27ff5f386ce82df68d54244dda79f

JPMorgan Accused of Breaking Its Duty to Clients

Sigma collapsed a year later. Now, new documents unsealed late last month as part of a lawsuit by bank clients against JPMorgan show for the first time just how high the warnings about Sigma went — all the way to the office of the bank’s chief executive, Jamie Dimon.

While the clients lost nearly all their money, JPMorgan collected nearly $1.9 billion from Sigma’s demise, according to the suit. That’s because as Sigma’s troubles worsened, JPMorgan lent the vehicle billions of dollars and received valuable assets in the form of a security deposit.

After Sigma came undone in September 2008, many of those assets ultimately became JPMorgan’s and eventually appreciated in value, giving the bank a large profit, the suit says.

The case, which is filed as a class action and includes several pension funds as named plaintiffs, accuses JPMorgan of breaching its responsibility to keep its clients in safe investments, and it sheds new light on one of Wall Street’s oldest problems — whether banks treat their clients’ money with the same care that they treat their own.

Joseph Evangelisti, a spokesman for JPMorgan, called some of the suit’s accusations “ludicrous” and said the bank lent more than $8 billion to Sigma to try to help the vehicle survive, not to profit from its failure. He said the bank did its best to protect its clients’ money and that its dealings with Sigma were to the clients’ benefit.

The suit, however, asserts that JPMorgan workers developed a “grand scheme” to profit from Sigma in the event of a collapse, even though employees at another part of the bank left client money invested in the vehicle.

One internal e-mail between top executives, for instance, states that the firm needed to protect its own interests in its dealings with Sigma, without taking into account the clients’ position. The suit also contends that the bank’s loans to Sigma gave it access to the vehicle’s best assets, at a discount, which proved to be a profitable trade for the bank.

JPMorgan has said in a court filing that no such scheme existed and that it acted properly in the way it managed client money.

The bank argues that by law, different units of the company that dealt with Sigma could not share information, because of so-called Chinese walls, which are meant to prevent the spread of nonpublic information within the firm. According to this argument, the unit that invested client money in Sigma could not confer with the arm that lent the vehicle money.

But because the information rose to executives who oversee the entire company and were in a position to intervene, analysts say the issue is trickier.

“In one sense, I don’t think it’s good enough to say, ‘We’re a large organization, we can’t relay information.’ That, in many respects, is a cop-out,” said William Fitzpatrick, a banking analyst at Manulife Asset Management, a Canadian insurance company that is not party to the case. “Does Jamie Dimon have some sort of veto power where he can overrule it? That gets very gray.”

But he added, “I can see where the banks would come back and say, ‘The Chinese walls are there for a reason. We don’t want to put in manual overrides.’ ”

In many cases, the rules and practices banks follow are based on nonpublic information they receive.

It’s not as clear what a bank’s obligations are with insights that are based on public information, like some of the information related to Sigma.

Within the financial services industry, the case is being closely watched. A victory by JPMorgan’s clients may mean that banks will have to be more careful about deciding whether to share — or silo — information that affects their clients’ investments. The Securities Industry and Financial Markets Association, a prominent trade group, wrote a brief in support of JPMorgan last month saying that the pension funds that are suing had an “unprecedented and novel theory” that “contradicts decades of Congressional and regulatory guidance.” The trade group said that if the plaintiffs won, it would impose greater costs on banks.

Whatever the legal outcome, the new documents paint a picture of how one of Wall Street’s strongest players profited in its deals with the weak.

Article source: http://feeds.nytimes.com/click.phdo?i=b6e972a2f5e8567be35b9699d436a445