Giuliani to create Wall Street fund

Former New York City Mayor Rudolph Giuliani says he’s teaming up with a top banking firm to launch a $300 million fund that will invest in companies that help protect against terrorism.

The private fund will be run by Bear Stearns & Co. and Giuliani Partners LLC, the consulting firm established by the ex-mayor last year.

The former mayor, whose leadership during the Sept. 11, 2001, attacks brought him widespread praise, said he looked forward to helping companies that provide services “that will make the U.S. and the world a safer place.”

Above, Giuliani appeared at a news conference July 21 at the Lawrence Holidome. He was in Lawrence to receive the Dole Leadership Prize.

Telecommunications

Government suspends contracts with MCI

The General Services Administration suspended federal business with telecommunications giant MCI on Thursday after an investigation concluded the company lacks necessary internal controls and ethics.

MCI’s government contracts are valued at more than $1 billion each year. The company said it would not challenge the GSA decision.

After WorldCom was driven into bankruptcy by an $11 billion accounting scandal, it adopted the name of its MCI long-distance division in a bid to clean up its image.

Critics and competitors have said the government had been too lenient with the company by continuing to award it work, including hiring MCI to build a wireless phone network in Iraq.

Entertainment

Disney profits rise; theme parks struggle

Profits rose nearly 10 percent at The Walt Disney Co. in the third quarter on strong results from its movie and television divisions, although weak attendance at Disney’s theme parks hurt the company’s performance.

Disney reported net income of $400 million, or 19 cents per share, in the quarter ended June 30, compared to $364 million, or 18 cents per share, in the same period last year.

Revenues increased more than 6 percent to $6.2 billion compared to $5.8 billion in the same quarter last year as its animated film “Finding Nemo,” produced in conjunction with Pixar Animation Studios, set box office records.

Disney said it had waived royalty and management fees from Euro Disney, which operates two theme parks in France, as that company struggles to meet its loan obligations because of a weak tourism market in Europe.

Energy

Exxon Mobil profits increase for quarter

Higher oil and gas prices, along with the best results from its chemicals business in five years, helped boost Exxon Mobil Corp.’s profits by 58 percent in the second quarter.

The world’s largest publicly traded oil company said it earned $4.17 billion, or 62 cents per share in the three months ended June 30, up from $2.64 billion, or 39 cents per share, a year earlier.