Bank of America Corp. (NYSE: BAC) decision to complete the purchase of Merrill Lynch was best for shareholders and the board was not influenced by fear that regulators may oust management and directors, company officials said today. While the bank had a legal right to consider backing out of the deal last year as the brokerage’s losses mounted, the purchase was completed due to the fact that it would benefit shareholders, the company and the economy, said Brian Moynihan, the company’s general counsel last December, in testimony before the House Oversight Committee. The decision to proceed was based on the merits, not on “the government threatening board seats,” director Charles “Chad” Gifford stated at the Washington hearing. While “the government pushed us hard” to buy Merrill, Gifford noted that deciding on that basis “would have been dishonoring our fiduciary duty.” -Bloomberg
Goldman Sachs Group Inc. (NYSE: GS) under fire in Washington for setting aside billions of dollars for bonuses a year following its acceptance of taxpayer bailout funds, is preparing to team up with Warren Buffett to provide assistance to small businesses. The charitable effort, which may be announced soon, coincides with one of the Obama administration’s top economic priorities: spurring hiring at small companies. The initiative would aim to provide assistance, ranging from counseling to obtaining funding, to 10,000 U.S. businesses, according to the those who declined to be identified before the program is announced. Buffett’s Berkshire Hathaway Inc. (NYSE: BRKA) is the largest shareholder in Goldman Sachs. -Bloomberg
Upscale department store operator Saks Inc. (NYSE: SKS) reported a quarterly profit that exceeded Wall Street expectations for a loss, stoking investor hopes for a luxury market recovery, sending shares up 4.4 percent. The company posted a net profit of $1.9 million, or 1 cent per share in the third quarter that ended October 31, from a loss of $43.7 million, or 32 cents per share, a year prior. Analysts had forecasted a loss per share of 11 cents. Saks, which sells brands such as Marc Jacobs, Versace and Oscar de la Renta, reported overall sales dropped 8.5 percent to $631.4 million in Q3. It stated same store sales were lower by 10.1 percent during the quarter. -Reuters
U.S. economic problems continue to hit homeowners hard as more fell behind on their mortgages in the third quarter. The percentage of homeowners greater than 60 days past due on their mortgage payments soared to a record 6.25% nationwide in the three months ending September 30th. The rise was the 11th straight quarterly increase in the number of households delinquent on mortgage payments. Being two months behind is traditionally viewed as a precursor to foreclosure as homeowners by that time find it difficult to make up overdue payments. Year-over-year, the rate was up about 58%, from slightly less than 4%. –Daily Finance
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