June 23, 2004

Fondiaria-SAI, Italian insurer, will sell its Mercantile Leasing unit to Banca Italease for 121 million euros ($146 million) (S)

Connecticut Lt Gov Jodi Rell reintroduces herself to state, saying hers will be administration free of ethical questions; will replace resigning Gov John G Rowland on July 1; distances herself from Rowland by characterizing her relationship with him as working one, not personal; says if she had known about ethical lapses she would have spoken up; touts her own ethical record; says first order of business will be to restore confidence in government; says she expects to ask for resignations of some of Rowland's appointees who head executive agencies; Kevin B Sullivan will replace Rell as lieutenant governor; photo (M)

Market Place column on resurgent profitability of investment banks Morgan Stanley and Goldman Sachs; each reportedly nears tentative accord with Securities and Exchange Commission to pay $40 million to settle charges growing out of last stock market bubble; Goldman reports second-quarter earnings rose 71 percent from 2003 period, to $1.2 billion; Morgan Stanley reports earnings jumped 104 percent from 2003 quarter, also to $1.2 billion; both warn continued stock market weakness could hurt future earnings (M)

Federal Judge Martin J Jenkins rules in San Francisco that lawsuit charging Wal-Mart Stores with discriminating against women can proceed as class action covering about 1.6 million current and former employees, making it largest workplace-bias case in US history; lawsuit brought by six women accuses company of systematically paying women less than men and offering fewer promotions, citing fact that women make up 65 percent of hourly workers but only 33 percent of managers; Wal-Mart to appeal certification, saying company does not discriminate and that wage and promotion decisions are made by individual stores; huge discounter, worried about angry shoppers, has spent millions of dollars on ads showcasing treatment of women and plans to increase wages and improve workplace practices; Brad Seligman of Impact Fund, lead counsel for plaintiffs, says fundamental change at Wal-Mart would help all workers (M)

New York Yankees defeat Baltimore Orioles, 10-4; photo (M)