Banking

  • August 14, 2006

    Refco Trustee Bids For Broader Objection Rights

    Just days after a federal bankruptcy judge allowed a split in Refco Inc.’s creditors committee, the acting U.S. Trustee in the case is moving to retain her right to object to fees paid to an investment bank employed by the official committee of unsecured creditors.

  • August 14, 2006

    $75M Life Insurance Deal Zapped After Bankruptcy

    Conseco Inc., a once-highflying financial services company, prevailed Friday in its fight to avoid paying millions of dollars to cash out an unusual life insurance agreement for the former executive accused of driving the firm into the ground.

  • August 11, 2006

    SEC Offers Guidance For Hedge Fund Advisors

    In response to a request from the American Bar Association, the U.S. Securities and Exchange Commission has issued additional guidance for hedge fund managers in the wake of an appeals court ruling that overturned the agency’s hedge fund regulations.

  • August 11, 2006

    Postal Worker Pleads Guilty To Insider-Trading Scheme

    A New Jersey mail carrier admitted on Friday that after learning of improper accounting at Bristol-Myers Squibb Co. while serving on a grand jury investigation last year, he spilled the beans to two former Goldman Sachs Group Inc. employees.

  • August 11, 2006

    Grasso's Lawyers Look To Appeal Judge's Decision

    Not happy with what they call “the state’s transparent attempt to avoid having a jury” hear Dick Grasso’s case of executive overcompensation, lawyers for the former NYSE chairman said Friday that they will appeal the judge’s decision to hold a bench trial.

  • August 11, 2006

    Customers Cringe As $127.5M Refco Deal Goes Through

    A still-solvent unit of bankrupt commodities brokerage Refco Inc. will pay $127.5 million to the company’s creditors after a judge approved the deal, writing off concerns that the unit should save the money to pay off class action lawsuits.

  • August 10, 2006

    Customers Want Refco To Pick Up Legal Tab

    Contending that their work set the stage for a multi-billion dollar settlement, approximately two dozen Refco Inc. customers said Wednesday that they want the bankrupt brokerage to pick up $4.3 million in attorneys’ fees.

  • August 10, 2006

    Second Circuit Revives American Express Fraud Suit

    The Second Circuit Court of Appeals has reinstated a securities fraud suit—thrown out in 2004 by a lower court—against American Express Co. executives over investments in junk bonds that lost the company millions.

  • August 10, 2006

    Judge Delays Ruling On Refco Creditors' Split

    A bankruptcy judge attempted to quell a heated dispute Thursday over controversial changes to Refco Inc.’s creditors committee so negotiations can move forward on a $263 million settlement that would steer Refco closer to emerging from bankruptcy.

  • August 10, 2006

    Citigroup Unit To Shell Out $1M Over Disability Scam

    A unit of Citigroup Inc. must fork over $1.1 million after 100 brokers allegedly obtained waivers of mutual-fund sales charges that falsely claimed their customers were disabled.

  • August 9, 2006

    Spitzer Scores Trial Delay In Grasso Case

    In an unexpected turnaround, a state judge on Tuesday delayed a trial in the excessive pay package lawsuit brought by New York Attorney General Eliot Spitzer against tarnished former New York Stock Exchange chairman Richard Grasso.

  • August 9, 2006

    Broker-Dealers Fined $7M For Improper Commissions

    The National Association of Securities Dealers has stuck four broker-dealers linked to ING America Insurance Holdings Inc. with a whopping $7 million fine for their directed brokerage activities.

  • August 9, 2006

    Banks Reveal $250M Deal In Adelphia Investor Suit

    In the latest development in the fallout over the accounting fraud at Adelphia Communications Corp., a federal court has given the tentative green light to a $250 million agreement by 39 financial institutions that would settle a securities class action suit.

  • August 8, 2006

    SEC Will Not Appeal Hedge Fund Decision

    The U.S. Securities and Exchange Commission will not appeal the court ruling that struck down the SEC’s rules regulating the hedge fund industry, SEC Chairman Christopher Cox said on Monday.

  • August 8, 2006

    North Fork Bank To Settle Shareholder Lawsuit

    Hoping to cash in soon on its planned merger with Capital One Financial Corp., North Fork Bancorp Inc. announced Tuesday that it agreed in principle to settle a class action shareholder lawsuit.

  • August 8, 2006

    Court Revives Securities Class Action Against Amex

    In a blow to American Express Co., an appellate judge has vacated a lower court’s dismissal of a class action accusing the financial giant and some of its officials of securities fraud.

  • August 8, 2006

    AIG's Insurance Fight Spawns Trade Secret Battle

    A testy battle over trade secrets and employee agreements is brewing between former corporate partners after a group of officers and employees at insurance giant American International Group Inc. were sued by insurance brokerage C.V. Starr & Co. Inc.

  • August 8, 2006

    U.S. Trustee Defends Move To Split Refco Creditors

    In the first public explanation of her decision to split Refco Inc.’s unsecured creditors committee, U.S. Trustee Diana G. Adams said on Tuesday that the move had been necessary to salvage a “bitterly divided committee.”

  • August 8, 2006

    Conflicts Of Interest Plague Researchers

    Securities firms are not adhering to guidelines meant to prevent conflicts of interest in fixed-income research, according to NYSE and NASD regulators.

  • August 7, 2006

    Dairy Giant Milks Banca Popolare For €60M

    Banca Popolare Italiana has become the first Italian bank to settle with formerly bankrupt dairy giant Parmalat SpA, which is seeking about €7.5 billion from 50 banks worldwide in claw-back suits.