Goldman Sachs, P&G paid Rajat Gupta's legal fee

As per a deal reached between Goldman and Gupta before the trial, the latter would have to reimburse the bank for the legal fees advanced to him if found guilty


New York: Financial services firm Goldman Sachs has paid a large chunk of the nearly $30 million legal fees for its former board member Rajat Gupta's defence, a media report said.

"Goldman Sachs has paid for the bulk of Gupta's legal defence, which has cost nearly $30 million," the New York Times reported, citing a source familiar with the matter.

Proctor & Gamble (P&G) paid the remaining balance, NYT said.

Gupta who was a board member at Goldman Sachs and Proctor & Gamble was found guilty last week of passing confidential boardroom discussions at Goldman to the former founder of hedge fund Galleon, Raj Rajaratnam.

As per a deal reached between Goldman and Gupta before the trial, the latter would have to reimburse the bank for the legal fees advanced to him if found guilty, the report noted.

In addition, Goldman Sachs must continue to pay Gupta's bills until a final resolution of Gupta's appeal, a process that could take a couple of years.

"Goldman has been advancing Gupta money to pay his lawyer's bills because the bank's by laws require it to pay the legal fees of its top officers and directors for conduct that occurred while acting on behalf of the company," the NYT said.

"And Delaware, where Goldman is incorporated has generous laws regarding indemnifying executives to protect them from incurring personal liability for their work while doing their jobs," it added.

The publication noted that Gupta's lawyer fees does not only include his month-long trial, but also two-and-a-half- year legal odyssey that led to the charges against him, including a pitched battle with the Securities and Exchange Commission in a related civil case.


Consumer Court asks British Airways to pay Rs36,000 to lady passenger

British Airways denied the lady permission to take the flight to London, saying her onwards journey did not show as confirmed in their system, due to which the woman had to purchase fresh tickets at a higher price


New Delhi: For not allowing a woman to board its flight despite having a confirmed ticket, the British Airways has been asked by a consumer forum to pay over Rs36,000 as compensation to her for its 'deficient service', reports PTI.

The airline had denied her permission to take the flight to London, saying her onwards journey to Kansas, in the US from London did not show as confirmed in their system, due to which the woman had to purchase fresh tickets at a higher price.

The District Consumer Disputes Redressal Forum observed that the airline should have allowed her to fly up to London by which time her onward journey status could have been confirmed, as according to the UK law a person not holding UK visa can remain in its airport for up to 24 hours.

"If the system of opposite party (British Airways) failed to show onward confirmed journey, they could have allowed her to travel up to London. The status could have been confirmed by the time she had reached London.

"Instead it did not allow her boarding under the pretext that the rules did not permit them to carry a passenger holding no visa for UK, but admit that they can do so as per law for 24 hours of such a passenger's arrival at London," the South West district forum said.

The forum's order came on the plea of New Delhi resident Puja Ahluwalia, who had alleged that the airline did not allow her to board its flight, on the night of 13 August 2008, from Delhi to London despite having a confirmed ticket.

The bench presided by Narendra Kumar held that by denying boarding pass to the woman the airline had been negligent and deficient in service and directed it to pay her Rs21,046 as difference of the price of the initial ticket purchased by her and the amount paid later for fresh tickets, along with Rs10,000 for harassment and Rs5,000 as litigation cost.

The British Airways in its defence had contended that the woman was denied a boarding pass as her onward travel was not confirmed and UK law forbade airlines from carrying passengers without valid Visa for UK or not having confirmed booking for onward journey within 24 hours on arrival at London.


BRICS pledges $75 billion contribution to Euro zone bailout fund

China will contribute $43 billion, while India, Brazil and Russia would contribute $10 billion each with South Africa giving $2 billion to the Euro zone bailout fund created by the IMF


Los Cabos: India and four other countries of the five-nation BRICS bloc on Tuesday gave a big boost to International Monetary Fund (IMF)'s $430 billion bailout fund for the debt-wracked 17 nation Euro zone. BRICS countries, including Brazil, Russia, India, China and South Africa pledged to contribute $75 billion with New Delhi's contribution being $10 billion, reports PTI.

The pledge was made at an informal meeting of BRICS Leaders presided by Prime Minister Manmohan Singh ahead of the opening of the seventh G-20 Summit in this Mexican resort town.

According to Indian officials, China has agreed to contribute $43 billion while the contribution from Russia and Brazil will be $10 billion each. The South African contribution is $2 billion.

All the BRICS Leaders agreed that the Euro zone crisis threatened global financial and economic stability and that it was necessary to find cooperative solutions to resolve this crisis. The BRICS countries have been the new growth poles of the global economy.

The pledges for fresh contributions were made after the Leaders agreed to increase resources available with the Fund. In this context, they agreed to enhance their own contributions to the IMF.

This is with the understanding that these resources will be called upon only after existing resources, including the New Arrangements to Borrow, are substantially utilised, an official statement said.

"This would promote adequate burden sharing amongst IMF creditors. These new contributions are being made in anticipation that all the reforms agreed upon in 2010 will be fully implemented in a timely manner, including a comprehensive reform of voting power and reform of quota shares," the statement said.

The Leaders discussed swap arrangements among national currencies as well as reserve pooling. They agreed to ask their Finance Ministers and Central Bank Governors to work on this important issue, in a manner compatible with internal legal frameworks, and report back to the Leaders at the 2013 BRICS Summit.

The Leaders also emphasised the need for increasing the resource base of Multilateral Development Banks, so that increased resources could be provided for development, particularly for investments in infrastructure and in the social sectors in developing countries. They felt that the G-20 should pay importance to the development aspect in its agenda of work.

Prime Minister Singh in his address at the G-20 summit underlined the need to take steps to substantially expand the resource base of Multilateral Development Banks so that they have the firepower to help developing countries pursue their development goals.

The Leaders emphasised that given the current global situation and the need to bolster market confidence, it was important that the G-20 Summit issue a strong statement of intent in combating the international slowdown and the effects of the Euro zone crisis.

The Leaders agreed that this process of informal consultations on the sidelines of multilateral events was valuable and contributed to closer coordination on issues of mutual interest to BRICS economies.


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