Fraud suit for JPMorgan Chase
New York Attorney General Eric Schneiderman filed a lawsuit against JPMorgan Chase & Co. Monday for fraud over faulty mortgage-backed securities packaged and sold by the former Bear Stearns. It was the first action to come out of a working group created by President Barack Obama to go after alleged wrongdoing in the financial crisis. JPMorgan said it would contest the allegations, which concerned actions by Bear Stearns before it was acquired by JPMorgan in March 2008. The lawsuit alleged a "systematic abandonment of underwriting guidelines" in the selling of home loans that went into securities sold by Bear Stearns. Obama said in January he was creating the working group to "hold accountable those who broke the law" and "help turn the page on an era of recklessness."
'Green' guidelines updated
The Federal Trade Commission is releasing an updated version of its green marketing guidelines that aim to hold companies to truthful standards in touting the environmental friendliness of their products. The revision to the Green Guides, the first since 1998, includes new sections that address the use of carbon offsets, "green" certifications and seals, and renewable energy and renewable materials claims. The guides warn marketers not to make broad, unqualified claims that their products are environmentally friendly or eco-friendly. The FTC said "very few products, if any" deliver the far-reaching environmental benefits that consumers associate with such claims.
AOL Inc. said Monday it will put its videos on YouTube, including content from The Huffington Post, TechCrunch and its other brands. YouTube is the world's largest provider of online video content, and the deal could help AOL make more money from advertisements. The videos will be organized into 22 channels on YouTube, which is owned by Google Inc. AOL has been trying to grow its advertising business as its old dial-up Internet service continues to decline, with people signing up for faster services. In the latest quarter, AOL's revenue slid 2 percent to $531.1 million.
Fire hazard spurs Accord recall
Honda is recalling 600,000 Accord midsize cars in the United States and Canada to fix a faulty power steering hose that can leak fluid and cause a fire. The recall affects Accords with V-6 engines from the 2003 through 2007 model years. Honda has a report of one fire but no injuries or crashes. The five-passenger Accord is consistently among the top-selling vehicles in the United States, with a reputation for reliability and fuel economy. The National Highway Traffic Safety Administration said in a posting on its website during the weekend that the Accord's power steering hose can deteriorate with prolonged exposure to engine heat. The hoses can crack and leak, possibly causing a fire or loss of power-assisted steering.
Yahoo CEO welcomes son
Yahoo chief executive Marissa Mayer gave birth to a boy late Sunday, casting a spotlight on her ability to steer the struggling Internet company in a new direction while adjusting to the challenges of being a first-time mother. Mayer announced her pregnancy on her social networking accounts just a few hours after Yahoo hired her as its third full-time chief executive in less than a year. The pregnancy news amplified the buzz about Mayer's defection from Google Inc., where she spent 13 years as a key executive overseeing some of the services that helped to drag down Yahoo. Yahoo's decision to anoint a soon-to-be mom as its CEO was hailed as a breakthrough for women seeking to prove men aren't the only ones who can balance a high-powered executive lifestyle and early parenthood. -- AP