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Renault’s chief operating officer resigns
Renault announced in Paris that Carlos Tavares, the French automaker’s chief operating officer, is stepping down amid speculation that he might be headed to a top job at Ford or General Motors. Ford’s chief executive, Alan Mulally, is 68, while GM’s boss, Daniel Akerson, is 64. Tavares, 55, had long been seen as a possible successor to Carlos Ghosn, 59, Renault’s chairman and chief executive, and is the man credited with turning around Renault’s Japanese alliance partner, Nissan.
Investment firm Blackstone settles suit
Blackstone has agreed to pay $85 million to settle a lawsuit brought by a group of investors that accused it of misrepresenting some investments ahead of its initial public offering. In June 2007, at the peak of the private equity boom, Blackstone raised $4.1 billion in a share offering on the New York Stock Exchange. The settlement ends a five-year legal battle with investors who contended that the firm misrepresented the value of three investments in its prospectus. Blackstone denied any wrongdoing or liability in the settlement. By settling, Blackstone avoided a securities class-action trial that was scheduled to begin next month.
Broker use of client assets faces limits
Brokers face restrictions on using clients’ assets as collateral for other trades, as part of a push by global regulators to prevent the securities lending market from sparking chain reactions that could cause a crisis. Under recommendations published by the Financial Stability Board, brokers wouldn’t be allowed to tap client assets for their own trading, and they would have to provide “sufficient disclosure” of plans to use the securities as collateral in other transactions. Regulators are seeking to rein in how traders use collateral in a bid to prevent any repeat of the turmoil that followed the 2008 collapse of Lehman Brothers Holdings Inc., which was driven in part by confusion over who was owed what on outstanding trades.
FROM NEWS SERVICES