theSun | WEDNESDAY JANUARY 28 2009 15

business Hang Seng S&P/ASX200 TSEC KLCI STI KOSPI Nikkei

CLOSED 3,444.00 CLOSED CLOSED CLOSED CLOSED 8,061.07
101.30 378.93

market summary

Banker sells US$14mil

JANUARY 23, 2009

INDICES CHANGE
FBMEMAS 5727.79 -28.50
COMPOSITE 872.69 -6.33
INDUSTRIAL 2056.26 -20.79
CONSUMER PROD 282.86 -1.44

house to wife for US$100

INDUSTRIAL PROD 66.41 -0.24
CONSTRUCTION 164.67 -1.75
TRADING/SERVICES 115.62 -0.73
FINANCE 6841.65 -27.44
PROPERTIES 529.05 -3.83
PLANTATIONS 4285.76 -16.39
MINING 249.25 UNCH
FBMSHA 5945.50 -43.34
FBM2BRD 3927.56 -3.36
TECHNOLOGY 12.85 -0.01 MIAMI: Dick Fuld (pix) took Palm Beach, is their collection that was the and advisers, accusing them of
home so much money in the “seasonal getaway” envy of Wall Street, hiding its dire financial condi-
TURNOVER VALUE years before his firm spiralled and one of five while taxpayers tion.
277.133mil RM388.359mil into bankruptcy that he couldn’t homes the couple were now on the Fuld and his wife recently
even calculate how much. own. hook for hundreds raised US$13.5 million (RM48.6
But now, the former Lehman As details of the of billions of dol- million) from the sale of a col-
Brothers boss is counting every transfer emerged lars to prop up the lection of abstract impressionist
penny and, as he prepares for on Sunday, Wall banking system. drawings and Kathleen Fuld
Russia plans to an onslaught of lawsuits against
him, he finds himself at the
Streeters and law-
yers speculated that
When one law-
maker said he be-
attracted attention when she
went shopping at upmarket
inject US$27b centre of a financial mystery.
In the weeks after Lehman
the couple could be
trying to shield as many
lieved Fuld had taken
home half a billion dollars
Hermès over the holidays and
requested white bags, instead of
collapsed around him, triggering of their assets as possible from in pay and bonuses during the the designer brand’s signature
into banks the worst financial panic since
the Great Depression and caus-
lawsuits, including bankruptcy
proceedings.
previous decade, as the finance
industry feasted on a booming
orange ones.
The transfer of the Florida
MOSCOW: Russia plans a 900 ing him a personal US$1 billion Fuld stayed on at Lehman sub-prime mortgage market mansion has raised further
billion-rouble (US$27.4 billion or (RM3.6 billion) loss on his stake Brothers to assist with bank- and a buoyant economy, Fuld interest in the couple’s financial
RM98.64 billion) capital injection in the firm, Fuld transferred ruptcy proceedings there, until said the figure was not right circumstances.
for commercial banks hit by the ownership of a US$14 million the end of December. but could not provide another, “One thing to look for when
economic crisis, with state-control- (RM49.8 million) mansion in Lehman Brothers, which is and eventually agreed to some- someone is under pressure
led lenders set to receive the largest Florida to his wife, Kathleen. She being run by an administrator, thing close to US$300 million from creditors is whether they
share, government sources said paid just US$100, the minimum had no comment. (RM1.08 billion). are transferring assets to other
yesterday. allowed by Florida law. In the congested race to be The collapse of Lehman people,” said Eric Ruff, a Florida
Sberbank, Russia’s biggest lender, The five-bedroom property, named the official face of Wall began a chain reaction in the attorney. “That technique is one
was likely to receive a 500 billion- nestled on 1.33ha of beachfront Street greed, Fuld has been derivatives markets that came of the oldest tricks in the book
rouble subordinated government at beautiful Jupiter Island, north a nose ahead since his often close to a full-scale financial and the laws against it are named
loan, one source told Reuters, citing of the well-to-do playground of belligerent performance in panic and prompted the US after Queen Elizabeth I.”
a decision taken at a meeting of the front of Congress in October, government to propose an Florida has generous laws
government’s anti-crisis committee. as lawmakers picked over the unprecedented US$700 billion that protect residents from los-
“Sberbank has no urgent need for One thing to look for when years of risky bets that enriched
Lehman executives and had ul-
(RM2.66 trillion) bailout for Wall
Street – against the wishes of an
ing their homes in bankruptcy
and other legal proceedings.
new capital, but this could change
depending on the increasing share someone is under pressure timately capsized the 158-year- American public that wanted to Ruff said the Jupiter Island
old firm the previous month. see super-remunerated bankers mansion might well have been
of non-performing loans and the
state of the banking sector,” Troika
from creditors is whether At the hearing, lawmakers punished for their excesses. shielded from anyone seeking
Dialog analyst Olga Veselova said. they are transferring assets lambasted Fuld as a “villain”
for amassing a sprawling prop-
Fuld has been named in
numerous investors lawsuits
compensation from Fuld alone
because it was already in joint
Russia’s government has already
allocated over US$200 billion, to other people.” erty empire and a modern art against Lehman, its executives ownership. – Independent
spending some of the oil wealth ac-
cumulated over the past decade, to

‘Power tariff incentives for industries being studied’

cushion an economy widely forecast
to be heading into recession this
year.
Major players among the coun-
try’s 1,000-plus banks have been
charged with ensuring the cash
reaches the real economy, keeping
money markets ticking over and
filling holes left by the dearth of
foreign funding during the global
credit crunch.
The government source said
another state-controlled bank, No. 2
Russian lender VTB, would receive
200 billion roubles as part of the lat-
est rescue package.
Other commercial banks would
share 100-200 billion roubles. – Reu-
ters
KUALA LUMPUR: Indus-
tries may receive electricity
tariff incentives from the
government to reduce their
burden and enable them
to carry on operations in
the midst of the global eco-
nomic slump.
The government, Tenaga
Nasional and related parties
are in active discussions on
this matter.
“Studies are under way
to determine how we can
help them, including pro-
viding incentives to reduce
their burden,” said the pres-
ident/chief executive officer
of Tenaga Nasional, Datuk
Seri Che Khalib Mohamad
Noh, to 1konsumer@ber-
namatv recently.
He was speaking on
the topic, “Electricity and
Consumers”.
He hoped the govern-
ment would be able to
announce soon a package
for the industries to assist
them.
“The announcement
may be soon. We are ac-
tively discussing to find a
solution,” Che Khalib said.
For the domestic sector,
Che Khalib said almost 60%
of users in this category fell
under a monthly user tariff
of 200kw per hour, where
there had been no increase
in tariffs over the past 10
years.
“Sixty per cent of the
people in this country are
not from the lower income
group. According to sta-
tistics, only about 20% are
and usage is in the range of
RM40 monthly.
“We cannot view a prob-
lem on an ad hoc basis. We
need to see it in its totality as
it has specific implications
such as the gas subsidy by
the government and such.
It is being studied.
“For the moment, we are
thinking of the industries
first so as to not disrupt
their operations,” he said.
He also said that do-
mestic consumers were
receiving a subsidy not just
from Tenaga Nasional but
the government as well.
“In drafting the tariffs
previously, we took into
account the important
segments in the country. If
everyone wanted a subsidy
in terms of tariffs, not just
Tenaga Nasional but also
the government cannot
afford it,” he explained.
– Bernama