Corporate Crackdown: Latest News Stories

FTC cracks down on debt-relief companies

dmerchant — Thu, 29 Jul 2010 09:50:41 -0400

The Federal Trade Commission Thursday outlined strict new regulations on debt-relief companies that promise to slash the amount of money consumers owe on their credit cards.

Citigroup Pays $75 Million to Settle Subprime Claims

dmerchant — Thu, 29 Jul 2010 09:48:36 -0400

Citigroup agreed on Thursday to pay $75 million to settle federal claims that it failed to disclose vast holdings of subprime mortgage investments that were deteriorating during the financial crisis and ultimately crippled the bank.

'Systemic risk' theory gains in stature as way to prevent the next bubble

dmerchant — Tue, 27 Jul 2010 09:53:33 -0400

Americans might be counting on the day when home and retirement-fund values start to rise again, but anyone expecting to benefit from a future boom in prices should take note: Economic policymakers around the world are looking for ways to make sure that doesn't happen, or at least not with such intensity that it risks the kind of bust that usually follows.

Embattled BP Chief to Exit

dmerchant — Mon, 26 Jul 2010 14:55:51 -0400

The board of BP PLC is negotiating the departure of its embattled chief executive, Tony Hayward, according to people familiar with the matter, a bid by the U.K. oil titan to move beyond the Gulf of Mexico disaster that has undercut his three-year effort to remake the company.

Some Backup for Goldman on A.I.G.

dmerchant — Mon, 26 Jul 2010 11:20:02 -0400

For almost two years, Goldman Sachs has been spinning what many believed was a far-fetched tale.

Goldman has maintained that it had entirely hedged its exposure to the American International Group before A.I.G. collapsed in September 2008. Goldman’s chief financial officer, David Viniar, has repeated over and over again: “We had no direct exposure.”

Dell to Pay $100 Million Settlement

dmerchant — Thu, 22 Jul 2010 09:55:37 -0400

Dell, several former executives, and its founder, Michael S. Dell, agreed Thursday to pay more than $100 million in penalties to settle charges of disclosure accounting fraud filed by the Securities and Exchange Commission.

Federal Report Faults Banks on Huge Bonuses

dmerchant — Thu, 22 Jul 2010 09:53:00 -0400

With the financial system on the verge of collapse in late 2008, a group of troubled banks doled out more than $2 billion in bonuses and other payments to their highest earners. Now, the federal authority on banker pay says that nearly 80 percent of that sum was unmerited.

Mine safety officials slam Massey claims on ventilation

dmerchant — Thu, 22 Jul 2010 09:50:46 -0400

Mine safety officials are painting a portrait of ineptitude and confusion by officials at Massey Energy Co. in the months before an explosion at the company's West Virginia mine killed 29 men.

U.S. Drills Deep Into BP as Spill Drama Drags On

dmerchant — Wed, 21 Jul 2010 11:06:56 -0400

Bob Dudley, BP PLC's lead executive in the Gulf of Mexico, spotted his U.S. government counterpart, retired Adm. Thad Allen, at the New Orleans hotel where both were staying earlier this month. Wanting to say good night after a long day, Mr. Dudley instead got fresh orders.

Toyota Subpoenaed on Steering Flaws

dmerchant — Tue, 20 Jul 2010 11:27:17 -0400

A federal grand jury in New York has subpoenaed Toyota, seeking information on steering-related defects in its vehicles and possibly widening an investigation into the automaker’s handling of a 2005 recall.

Mary Schapiro, SEC Chief, Appearing Before Congress In Wake Of Financial Reform, Goldman Deal

dmerchant — Tue, 20 Jul 2010 11:25:02 -0400

The head of the Securities and Exchange Commission is appearing before Congress days after the passage of sweeping financial regulation that gives the agency new powers and a landmark settlement of civil fraud charges with Goldman Sachs & Co.

S.E.C. Pursuing More Cases Tied to Financial Crisis

dmerchant — Tue, 20 Jul 2010 11:00:27 -0400

Days after the Securities and Exchange Commission secured a $550 million settlement from Goldman Sachs, the agency’s chairwoman said on Tuesday that the commission was pursuing several other investigations related to the 2008 financial crisis.

BP allowed to keep well shut amid concerns about seepage

dmerchant — Mon, 19 Jul 2010 11:47:39 -0400

The federal government, concerned about seepage near BP's damaged oil well in the Gulf of Mexico, authorized the company Monday to keep the well shut for another 24 hours provided that BP engineers continue to "rigorously monitor" the sea floor for any signs that the situation is worsening.

States to Protect Borrowers Who Turn to Cars for Cash

dmerchant — Mon, 19 Jul 2010 11:45:06 -0400

Several states are putting curbs on loans backed by car titles—short-term, high-interest debt that critics say too often results in consumers losing their vehicle when they can't keep up with the payments.

Rivals say Google has too much sway over administration's net neutrality policy

dmerchant — Mon, 19 Jul 2010 11:22:29 -0400

Internet service providers cite e-mails between onetime Google executive Andrew McLaughlin, who now works for the White House, and his former colleagues as the FCC prepares to rewrite the rules governing broadband.

Goldman Sachs to pay record settlement in fraud suit, change business practices

dmerchant — Fri, 16 Jul 2010 11:49:18 -0400

Goldman Sachs agreed Thursday to pay $550 million to settle a fraud suit brought by the Securities and Exchange Commission that accused the storied Wall Street bank of selling a subprime-mortgage investment that was secretly designed to fail.

Senate paves way for passage of financial overhaul bill

dmerchant — Thu, 15 Jul 2010 13:45:39 -0400

The Senate on Thursday morning cleared a key procedural hurdle in the effort to pass far-reaching new financial regulations, garnering enough support to overcome the threat of a filibuster and pave the way for a final vote this afternoon.

BP's Relief Wells Had Blowout Preventer Problems Just Like Deepwater Horizon

dmerchant — Thu, 15 Jul 2010 11:47:32 -0400

Oil has been gushing into the Gulf of Mexico for almost 90 days because, in part, the well's blowout preventer didn't work. And as it turns out, the blowout preventers on the relief wells -- the relief wells that are the only way to permanently stop the oil from leaking -- were also found to have "performance problems."

Glaxo Plans $2.36 Billion Charge for Legal Issues

dmerchant — Thu, 15 Jul 2010 10:52:19 -0400

GlaxoSmithKline, the British pharmaceutical company, said Thursday that it would take a second-quarter charge of $2.36 billion related to legal cases involving its drugs Avandia and Paxil.

Toyota Concedes 2 Flaws Caused Loss of Control

dmerchant — Wed, 14 Jul 2010 12:05:35 -0400

DETROIT — Toyota said Wednesday that its investigation of about 2,000 vehicles reported to experience sudden acceleration found evidence that sticking accelerator pedals and interference by floor mats — the subjects of two big recalls — did indeed cause some of the incidents.

SEC begins overhaul of voting system for investors

dmerchant — Wed, 14 Jul 2010 10:50:33 -0400

The Securities and Exchange Commission began Wednesday to overhaul the system through which investors vote their shares in public companies.

Federal regulator subpoenas firms as Fannie and Freddie attempt to regain losses

dmerchant — Tue, 13 Jul 2010 09:36:16 -0400

A federal regulator subpoenaed mortgage lenders and other companies for loan documents Monday in an effort to reclaim funds they may owe government-backed firms Fannie Mae and Freddie Mac.

Democrats Corral Votes on Bank Bill

dmerchant — Mon, 12 Jul 2010 13:37:49 -0400

WASHINGTON — Final passage of sweeping legislation to overhaul the nation’s financial regulatory system is now a question of when — not if — according to Senate Democrats. Yet, there still seem to be a lot of questions about when.

U.S. Issues Revised Offshore Drilling Ban

dmerchant — Mon, 12 Jul 2010 09:44:52 -0400

Interior Secretary Ken Salazar issued revised rules on Monday for a six-month moratorium on deepwater oil drilling in the Gulf of Mexico, replacing an earlier one that had been declared invalid by federal courts.

In BP’s Record, a History of Boldness and Costly Blunders

dmerchant — Mon, 12 Jul 2010 09:34:02 -0400

Hurricane Dennis had already come and gone on July 11, 2005, when a passing ship spotted a shocking sight in the Gulf of Mexico: Thunder Horse, BP’s hulking $1 billion oil platform, was listing precariously to one side, looking for all the world as if it were about to sink.

FINANCE: Stockbrokers, Credit Raters, Fannie Among Study Targets Ordered by Financial Reform Bill

dmerchant — Thu, 08 Jul 2010 10:18:25 -0400

When faced with some of the toughest issues in writing the financial regulation reform bill, Senate and House negotiators resorted to a classic Washington approach: They ordered up studies.

Owner of Exploded Rig Is Known for Testing Rules

dmerchant — Wed, 07 Jul 2010 09:35:39 -0400

Transocean is the world’s largest offshore drilling company, but until its Deepwater Horizon rig exploded in the Gulf of Mexico in April, few Americans outside the energy business had heard of it. It is well known, however, in a number of other countries — for testing local laws and regulations.

As Oil Industry Fights a Tax, It Reaps Subsidies

dmerchant — Sat, 03 Jul 2010 13:15:29 -0400

When the Deepwater Horizon drilling platform set off the worst oil spill at sea in American history, it was flying the flag of the Marshall Islands. Registering there allowed the rig’s owner to significantly reduce its American taxes.

The owner, Transocean, moved its corporate headquarters from Houston to the Cayman Islands in 1999 and then to Switzerland in 2008, maneuvers that also helped it avoid taxes.

Goldman Defends Valuations That Helped Put AIG In Bind

dmerchant — Fri, 02 Jul 2010 11:02:50 -0400

Goldman Sachs Group Inc., already under scrutiny from regulators, faced new questions from a congressional commission about whether it aggressively marked down the value of its mortgage-securities positions to benefit a bet Goldman made against the mortgage market.

A bipartisan panel reviewing causes of the financial crisis grilled Goldman executives about valuations of mortgage assets the Wall Street firm provided American International Group Inc. and other trading partners in the mortgage crisis of 2007 and 2008.

BP Hit With $5.2 Million Fine for False Reports

dmerchant — Wed, 30 Jun 2010 14:02:29 -0400

WASHINGTON—The Interior Department said it has fined the U.S. unit of BP PLC $5.2 million for submitting "false, inaccurate, or misleading" reports for energy production on Indian tribal lands in southwestern Colorado.

The civil penalty marks the first enforcement action by the department's Bureau of Ocean Energy Management, Regulation and Enforcement under its new director Michael Bromwich, who took office last week.