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February 8, 2005
Frist Asks Specter to Hold Off Introducing Asbestos Measure
Senate Majority Leader Bill Frist (R–Tenn.) has asked Judiciary
Chairman Arlen Specter (R–Pa.) to hold off on introducing asbestos
legislation, CongressDaily reported. Specter said he has
been planning to formally introduce a final bill, but Frist last
Thursday asked him to hold off for a week or more. Frist told reporters
he wanted to give members more time to review the bill before it is
formally introduced, the newswire reported.
Senate Gets Advice of Supporters and Opponents of Class-action
Bill
As the Senate began debate yesterday on a bill to overhaul rules for
class-action lawsuits, supporters urged members to pass the legislation
as-is and opponents pushed for amendments addressing civil rights,
employment protections and other issues, CongressDaily
reported. Monday’s floor action was limited to opening statements,
but opponents were expected to offer amendments today. Under a unanimous
consent agreement, all amendments must be relevant to the bill, the
newswire reported.
Consumers Borrow Less in December Than Forecast
Consumer borrowing increased less than expected in December,
according to data released yesterday, Bloomberg News reported. Borrowing
through charge cards, car loans and other non-mortgage methods rose $3.1
billion, to $2.104 trillion, from a revised gain of $2 billion in
November that was first reported as a decline, the Federal Reserve
said.
“Households have become increasingly hesitant to tap even
deeper into consumer debt,” said Stephen Wood, principal economist
at Insight Economics in Danville, Calif. “As mortgage refinancing
opportunities become scarcer, households will either have to resort to
more consumer debt or bring their spending back into line with their
more slowly growing income,” he said, the newswire reported.
Witness Links Ebbers to Fraud at WorldCom
The star witness in the prosecution’s case against Bernard J.
Ebbers, the former CEO of WorldCom, took the stand yesterday and
directly connected Ebbers to the accounting fraud that brought down the
company in 2002, the New York Times reported. The testimony
of Scott D. Sullivan, WorldCom’s former CFO, countered arguments
by the defense that Ebbers was incapable of understanding complex
accounting and incapable of orchestrating a fraud. His testimony is
crucial to the government’s case against Ebbers, who is accused of
conspiracy, securities fraud and filing false statements with
regulators, the newspaper reported.
Ex-Enron Executive Settles SEC Case
A former Enron executive, Raymond M. Bowen, has agreed to pay
$500,000 to settle charges of earnings manipulation in 2000, the
Securities and Exchange Commission (SEC) said yesterday, Reuters
reported. Bowen, who was managing director of Enron North America and
co-head of its commercial transactions group, was barred from serving as
an officer or director of a public company for five years, the SEC said,
the newswire reported.
UAL Hopeful for Chapter 11 Exit, But Hurdles Remain
United Airlines remains hopeful of its prospects for exiting
bankruptcy, although a top executive acknowledged the carrier still
faces obstacles to regaining financial health, Reuters reported. Like
its rivals throughout the industry, UAL has been affected by soaring
fuel costs, weak revenue and low-fare competition. United must reach
pension deals with its workers, resolve labor savings disputes with its
mechanics and machinists, secure financing and complete a reorganization
plan that satisfies the bankruptcy court, Reuters reported.
ATA Airlines to Sell Chicago Express
ATA Airlines Inc. said yesterday it plans to sell its regional
carrier Chicago Express as part of its bankruptcy reorganization, the
Associated Press reported. Chicago Express, which operates as ATA
Connection, connects smaller Midwest cities with Chicago’s Midway
International Airport or Indianapolis. Chicago Express has 16 Saab 340B
aircraft, 14 of them leased, and a maintenance hub at Midway. The
regional airline’s federal operating certificate will be included
in the sale, ATA said. Indianapolis-based ATA, which is owned by ATA
Holdings Corp., filed for chapter 11 bankruptcy protection in October,
the newswire reported.
Adelphia Seeks to Eliminate $2 Trillion in Bankruptcy Claims
Bankrupt Adelphia Communications Corp. said on Thursday it will seek
to eliminate about $2 trillion in claims it says are primarily the
result of duplicate paperwork, the Associated Press reported. Adelphia
will submit its claims’ bjection to the U.S. Bankruptcy Court in
New York, the company said in a Securities and Exchange Commission
filing. Some 18,000 claims totaling $3 trillion have been made against
Adelphia since it filed for bankruptcy nearly three years ago. Spokesman
Paul Jacobson said many creditors filed multiple claims because they
were uncertain which of the 200 separate business units may have owed
them money, the newswire reported.
Indiana and Other Cash-strapped States Depend on Gaming Funds
Across the nation, governments are increasingly relying on the losses
of gamblers as they deal with revenue shortfalls and escalating bills,
the Indianapolis Star reported. Casino taxes and lottery
profits have become an important source of cash, adding more than $20
billion annually to states’ bottom lines. In Indiana, for
instance, about 5 percent of state revenues come from gambling. But as
the industry and politicians point to all that gambling money has done,
others say the social costs have been steep. Read the full article at
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W.R. Grace Charged in Montana Asbestos Case
W.R. Grace & Co. and seven current or former executives were
charged yesterday with conspiring to endanger residents in Libby, Mon.,
and then concealing the health risks from asbestos-contaminated
vermiculite, the U.S. Justice Department said, Reuters reported. It said
the 10-count indictment charged the defendants with conspiracy, clean
air act violations, wire fraud and obstruction of justice involving
asbestos-related diseases linked to its former vermiculite mining and
processing operations, the newswire reported.
YUKOS Drops Five Banks from U.S. Court Case
Russian oil company YUKOS yesterday said it has dropped its complaint
against five banks it had taken to court in a U.S. legal dispute
involving the sale of its Yuganskneftegaz oil producing arm, Reuters
reported. YUKOS had said the five banks—ABN AMRO, BNP Paribas, JP
Morgan Chase Bank, Calyon and Dresdner Kleinwort Wasserstein—were
part of a consortium of lenders behind a probable bid for Yugansk, which
was auctioned off by Russian authorities in December, the newswire
reported.