NewsMine — cabal-elite — international-banking — Viewing Item

Worldcom probe of citigroup morganchase deutschebank { March 19 2004 } Original Source Link: (May no longer be active)    http://www.latimes.com/business/la-fi-worldcom19mar19,1,2905504.story?coll=la-headlines-business http://www.latimes.com/business/la-fi-worldcom19mar19,1,2905504.story?coll=la-headlines-business MARKETS Probe of WorldCom Bankers Is Reported From Bloomberg News March 19, 2004 The Securities and Exchange Commission is investigating whether Citigroup Inc., J.P. Morgan Chase & Co., Bank of America Corp. and Deutsche Bank were aware that WorldCom Inc. was riskier than they told investors before a $10-billion bond sale, two people familiar with the matter said. The regulator is looking into the sale after bondholders said in a lawsuit that Citigroup analyst Jack Grubman and other bankers were aware of the risks and didn't inform the public, according to the sources, who declined to be identified. The bonds, which the banks helped sell in May 2001, 14 months before WorldCom filed for bankruptcy protection, now trade at 35 cents on the dollar. "Anytime the SEC is investigating, you can be pretty sure they've got smoke at least, if not actual fire," said Larry Soderquist, director of the Corporate and Securities Law Institute at Vanderbilt University. "This absolutely raises the stakes for any banks that sold these bonds." The bondholders, led by New York Comptroller Alan Hevesi, who represents $118 billion in state pension funds, made their claims in a brief dated March 8 in U.S. District Court in the Southern District of New York. The brief, earlier reported by the New York Times and the Wall Street Journal, sought to avoid a postponement of proceedings in a long-running suit. The 24-page brief, accompanied by 363 pages of bank documents, says internal memos show the banks "had much more access to what was happening within WorldCom than they presently acknowledge." Ashburn, Va.-based WorldCom filed for Chapter 11 in July 2002 after discovering $3.85 billion in accounting errors. The SEC and representatives of the banks declined to comment. In legal papers in response to the suit, the banks said they acted properly and were unaware of fraud. The bondholders' suit cited reports by Grubman, 50, then a Citigroup telecommunications analyst. He left Citigroup in August 2002 and agreed in April to pay $15 million and be barred from the securities industry as part of a settlement with Wall Street banks that ended a government probe into biased research. In a Feb. 8, 2001, report that was circulated to Citigroup clients, Grubman wrote that WorldCom would take in more cash from sales than it paid out for expenses by 2002, a measure known as free cash flow. He recommended that clients buy the stock. A month later, in a memo intended only for internal use at the bank, Grubman forecast the opposite.

90s-bubble african-union arabia brit-pound china-yuan citigroup dissent euro federal-reserve gold-scam imf narcotics pacific-union predatory terror-links-to-banks US-debt US-dollar Bank of america creating 2nd biggest bank { October 27 2003 } Bank of america to be penalised for mutual fund scandal { March 5 2004 } Bank of american defrauded stock holders Bank of egypt Bank of japan hardens intervention tactics { February 25 2004 } Bankers secret world { July 14 2002 } Bankofamerica rigged finances italian dairy group { March 17 2004 } Banks monopoly { March 6 2001 } Banks own control nations wealth { October 23 2004 } Banks privilages { August 29 2002 } Banks responsible for housing bubble { July 13 2007 } Beijing to invest 100b in latin america Big banks operate monopoly { March 6 2001 } Bofa 47b merger seals deal { March 18 2004 } Bofa profits jump 3prc Brokers get kickbacks for fund promotion { January 13 2004 } Bush friend to handle iraqi international debt { December 6 2003 } Bush signs bankruptcy law to protect banks { April 21 2005 } China keeping US long term rates down Cleveland bank 1978 wants municipal go private Debeers pleads guilty in 10yr old price fixing case { July 13 2004 } Doj pursuit taxrebels { November 9 2002 } Eu ceo accounting scandal Fake earnings reports Fed only central bank raising rates Financial firms bankroll republican events { August 30 2004 } Global monetary europe experience Global monetary history Goldman president named new head of stock exchange { December 18 2003 } Growth of finance giants threatens stability markets { February 25 2004 } Hbsc to stop buy sell stock tips { February 24 2004 } Illegal trading after hours { November 3 2003 } Income tax unconstitutional supreme court 1895 Japan moves its interest rate up from zero { January 2007 } Jpmorgan chase buys bankone second largest bank { January 15 2004 } Louisiana purchase london bank { May 2 2003 } Mutual fund money pours into market { March 18 2004 } Mutual fund putnam profits expense costumers { November 4 2003 } Offshore tax havens 1b { May 27 2003 } Peruvian president calls for south american currency { January 17 2007 } Russians buying cars homes televisions on credit Spurring more bank mergers { October 27 2003 } Stelco financing by deutsche bank gets court approval Surging currency australia trade deficit { October 30 2003 } Terrorism financing banking laundering { September 24 2001 } What central bankers earn { August 24 2003 } Worldcom probe of citigroup morganchase deutschebank { March 19 2004 } Files Listed: 47

Correction/submissions

CIA FOIA Archive

National Security Archives

This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information, go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purpose of your own that go beyond 'fair use', you must obtain permission from the copyright owner.