Corporations and securities brief ~ SEC subpoenas 12 AIG executives
Amit Patel at 12:28 PM ET
[JURIST] Leading Monday's corporations and securities law news, the Wall Street Journal is reporting [subscription req'd] that the SEC has subpoenaed twelve executives at American International Group Inc. (AIG) [corporate website]. The subpoenas relate to several probes into questionable transactions at the insurance giant which led to an improper bolstering of its financial standing. The newspaper also reported AIG has started an internal probe to determine whether the company should formally sever ties with Chairman Maurice R. "Hank" Greenberg [Wikipedia profile]. At issue is a 2000 transaction which appears to have been used to raise the company's reserves artificially. Greenberg, who has led the company for nearly four decades, is scheduled to give a deposition on the matter to New York Attorney General Eliot Spitzer [official website] on April 12. AP has more.
In other news...
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- Microsoft [corporate website] and the European Commission [official website] has reached an agreement on a name for the new version of the computer giant's Windows XP software. This is the latest step by Microsoft to comply with the EU over the antitrust fine imposed last year. The new name will be Windows XP Home Edition N, with the 'N' standing for "not with media player." The new version could be on the markets within weeks. Read more about Microsoft's attempt to comply with the European Commission. BBC News has more.
- The SEC [official website] is suing three former executives of I-Go Corporation, provider of accessories for laptops and cell phones before it was acquired by Mobility Electronics Incorporated in September 2002, on charges of inflating revenue in 1999 and 2000. The commission sued the company's founder and former chief executive, Kenneth W Hawk, former chief financial officer, Michael Delargy, and former vice president Thomas de Jong. Read the SEC litigation release and complaint [PDF]. AP has more.
- In the largest private takeover since 1989, SunGard Data Systems Inc. [corporate website], whose software handles most Nasdaq Stock Market [official website] trades, will be acquired by seven buyout firms for $10.4 billion in cash. Read the SunGuard press release. Bloomberg has more.
- The China Banking Regulatory Commission [official website] has outlined 13 areas in which Chinese banks can improve their management and tighten internal controls to combat rampant fraud and mismanagement. Read the Commission press release. BBC News has more.
- Trump Hotels & Casino Resorts Inc. [corporate website] announced a settlement with the committee of the company's equity holders. Under the terms of the settlement, the company will make a $17.5 million cash payment to its common stockholders in exchange for the committee's support for Trump Hotels' recapitalization plan. Also, Donald Trump [Wikipedia profile] will trade his right to receive the former World's Fair Site in Atlantic City, New Jersey for a higher stake in the recapitalized company. AP has more.
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