Reuters Insider - At the Close: Ernst May Try to Settle Lehman Charges
13/06/2016 10:59
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Source: Thomson Reuters
Description: Reuters Senior Correspondent Emily Chasan says the
case brought by New York against Ernst & Young for
it's dealings with Lehman is a reputational
overhang and the firm wants to settle fast.
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Transcript (May be auto-generated)
Let's go inside the news at 4PM. Investors eagerly awaiting second quarter
results from Nike which are expected out after the bell. StarMine's
SmartEstimate predicts a profit of $0.89 a share, a surprise to the upside of
2%. Revenues estimated to come in at $4.84 billion which is in line with the
Street's view. US stocks have ended up at the close. The S&P broke through a key
level retracing all of the losses incurred after the collapse of Lehman Brothers
in September 2008. Financial led the way higher today. Legal experts say Ernst &
Young could settle out of court after being accused by New York prosecutors of
helping hide Lehman Brothers financial problems. Reuters Senior Correspondent
Emily Chasan joins me. Emily, what are your sources saying about a settlement? I
guess our sources are saying that Ernst & Young could settle very quickly in
this type of case because it's a big case for the firm, it's a big reputational
overhang. They'd like to see it gone quickly. Though they're also saying it
could be a large amount given that prosecutors are looking for $150 million in
fees back from Ernst & Young and they're also looking at the huge amount of
investors losses that people took on Lehman. Okay. Emily, thanks for that.
The FCC's decision to adopt new rules on Internet traffic is already attracting
political and industrial criticism. Regulators voted three to two to prevent
providers from blocking lawful content but still let them ration access to their
networks. Reuters FCC Correspondent Jasmin Melvin joins me now from DC. Jasmin,
what opposition have we seen so far to this ruling? Well, Rhonda, the
Republicans have all along been very vocal about their opposition to the FCC
moving forward with any rules that would seek to govern the Internet.
They've called the FFC's decision today unprecedented power grab and
Representative Greg Walden who will be the incoming Chair of the House Sub
Committee on communications and technology said he plans to hold a series of
hearings early next year and is looking into all legislative options to reverse
the order. Jasmin, thanks for that. Let's look now what's likely to move markets
in Asia on Wednesday. Taiwan reports its jobless rate for November, Malaysia
announces its latest CPI data and New Zealand releases its GDP for the third
quarter. Coming up in your Day Ahead at 4:30, we preview US existing home sales.
I'm Rhonda Schaffler, this is Reuters Insider