Bank of America is not paying overtime to employees, violating the laws of at least five states, according to the lawsuit in federal court in Kansas City. The complaint, filed yesterday, bringing together 12 separate cases brought by employees of the largest U.S. bank by assets in the states of California, Florida, Texas, Washington and Kansas. The policy and practice of the bank is refusing to pay overtime to employees in its branches for retail banking and call centers in the country, says the complaint. The bank denied to have violated the law. According to officials but instead pay them overtime when their work week exceeded 40 hours, the bank gave them compensation for time off or they’d never acknowledge that they have worked more than 40 hours in some cases, as what the staff has changed the statement of time worked. Employees wishing to get their outstanding wages retroactively. They required to view credit report of the bank and financial data for the quarter to be publish officially. The staff attorney Brendan Donelan said it plans to request the case be granted the status of a national collective action later this year.
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Several bad news in the U.S. failed to have any influence on American indexes and after a strong start and retain profitable positions throughout the market session closed with solid increases. Growth rates have made shares of companies from all industries, was particularly good mood on the positions of groups in the health sector because of expected blocking controversial health care reform in the country. Shares of Pfizer jumped 2.62 percent, rose 1.27 percent to those of Johnson & Johnson, had a 2.89 percent growth in Merck. Although Citigroup announced a loss of up to 7,6 billion dollars last quarter of 2009, the financial sector also recorded a profit. Appreciated shares and the bank itself (3.51%) reported having a bad result does not surprise and did not derail investors. Increased to more shares of Bank of America (+0,25%) and American Express (+1,3%). Data from the National Association of Builders of homes have not stopped the momentum of the indexes. The association said the index of confidence in the construction sector has reached the lowest level since June last year as potential buyers have decreased during the first month of 2010. However, Dow Jones Industrial Average ended the session with a jump of 1.09 percent to 10 725 points. S & P 500 rose by 1.25 percent to 1150 points and the Nasdaq Composite to its value added 1.42 percent to 2320 points.
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Bank of America intends to reimburse the U.S. government’s $ 45 billion received as state aid, said the BBC, citing the authority of the treasury, who has expressed confidence that in the coming days will bring these funds. State Bank received a loan in two tranches – last year in the wake of financial crisis and the purchase of investment bank Merrill Lynch. If the debt back to the state Bank of America will be exempt from restrictions on the distribution of bonuses to its employees, which was imposed as a condition for the provision of government loans. The debt will be back by $ 26.2 billion cash and $ 18.8 billion in securities. The results of the last months of this year the bank were not particularly good – reported losses of $ 1 billion, which in CD even worse than forecast. General Director of Bank of America Kenneth Lewis, who at the end of this year to retire, will receive for 2009, no salary or bonuses.
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The Bank of America-Merrill Lynch increased its forecast growth in gross domestic product (GDP) of Russia for 2010 from 3.9% to 5%, says the analysis, quoted by RIA Novosti. The increase in the estimate is based largely on expectations of increases in 2010/11, the average prices of Brent crude oil to 85 dollars per barrel in the previous forecasts for $ 75 a barrel. “The rise in oil prices by an average of 10% leads to accelerate the growth of Russia’s GDP by 1 percentage point,” said analysts from Merrill Lynch. They estimated that an additional 10 dollars a barrel to the price of oil will bring to Russia 26 billion dollars more revenue, which will affect positively the balance of payments. Thus, the positive trade balance of the country in 2010 amounted to 4,1% of GDP (compared with a previous forecast of 2.6 percent). According to the latest Merrill Lynch forecasts the budget deficit to Russia next year will be 4.3 percent (compared with a previous forecast of 5%). The bank commented that the accumulated funds in the so-called. Reserve and home loans will be sufficient to cover the budget deficit, but in 2011 Russia will probably have to borrow funds from outside. Consumer demand in Russia is still a low level, but this situation is normal for this stage of the economic crisis, says an analysis of the bank. From Merrill Lynch provide unemployment in Russia soon begin to decline, while there is growth in real incomes of the working population by 2%, and pensions – by 40%. Specified by the financial institution that wage growth in the private sector is questionable, but because of relatively low inflation (an average of 8% last year) and employees in private companies will have to rely on, albeit insignificant, increase their income.
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In the next few days the U.S. Treasury will ask the companies that received large government loans to seriously reduce salaries of senior employees. According to a source of authoritative agency media agency reduction in basic pay for the most expensive employees, will be up to 90%, while compensation and bonuses will be cut in half. It is unclear exactly what will be the ceiling on wages and how they will be calculated. The reductions apply to 25 of the most high paid executive directors in seven large U.S. financial companies. In them are American International Group, Bank of America, Citigroup, General Motors, GMAC, Chrysler LLC and Chrysler Financial. Smaller companies and those who have already returned to government loans in the financial plan of George Bush (TARP) as Goldman Sachs and JPMorgan Chase, will not be affected by the measure. Among other things, any financial limit for the targeted companies will mean that executives will have to ask permission for any special privileges worth over 25 thousand dollars – a private plane at a club membership and service cars.
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