In Monday's corporations and securities law news, the NASD has announced that Citigroup has agreed to pay $250,000 to settle allegations of using misleading sales material on hedge funds. Tomorrow the SEC is expected to announce new oversight for hedge funds. Read the NASD press release here. AP has more. Citigroup also issued an apology Monday for breakdown of its corporate governance, compliance and internal control systems related to its private banking business in Japan. The group announced a wide-ranging plan to regain the trust of financial regulators and the public. Read more about the plan here [PDF]. The Financial Times has more.
In other news, in what will become the world's largest steel company, Laksmi Mittal, the Indian entrepreneur, announced the merger of his existing assets in Ispat and LNM with US-based International Steel Group. The deal worth $17 billion will create a new company known as Mittal Steel. Read the Mittal press release here [PDF]. The company also had a webcast which can be viewed here. The Financial Times has more.... The SEC, in its financial-services industry conflicts probe, is finding indications that mutual fund companies paid retirement-plan consultants for a recommendation to the consultants' clients. Dow Jones has more.... As previously reported on JURIST's Paper Chase, antitrust regulators in the Justice Department have approved the proposed acquisition of AT&T Wireless Services Inc. by Cingular Wireless LLC. AP has more. Read Cingular's press release announcing the deal here and more information on the new company. Read the Department of Justice press release here.... The Army Corps of Engineers' top contracting official has demanded an investigation into a Halliburton Co. subsidiary which the official claims unfairly won no-bid contracts worth billions of dollars for support services in Iraq and the Balkans. Reuters has more.... Marsh & McLennan Cos. Chief Executive Officer Jeffrey Greenberg resigned only eleven days after New York Attorney General Eliot Spitzer's complaint [PDF] against the company was announced. Greenberg is being replaced by Michael Cherkasky, formerly of Kroll Inc. Read the Marsh press release here. Bloomberg has more.... As previously reported on JURIST's Paper Chase, the EU announced today that it would suspend sanctions on US imports after President Bush signed a tax reform bill last week which ended illegal export subsidies. Reuters has more.