In Tuesday's corporations and securities law news, the SEC is planning to sue American International Group Inc. (AIG), the world's largest insurer, for improperly hiding bad loans and inflating PNC Financial Services Group's profit by $155 million in 2001. Just last year, PNC agreed to pay $115 million to settle US Justice Department criminal charges. Read the AIG press release relating to the action here. Bloomberg has more.
In other news...
- As previously reported on JURIST's Paper Chase, a federal judge has lifted the stay on Martha Stewart's sentence and ordered her to surrender for federal prison by October 8. AP has more.
- Also as previously reported on JURIST's Paper Chase, jury selection was completed and opening arguments began Tuesday morning in the first criminal trial in the fallout of the Enron scandal. The full indictment of the six can be viewed here [PDF]. The Houston Chronicle has an overview of the trial and AP has more.
- Kraft Foods Inc. has announced the SEC will not seek an action against the food and beverage maker in connection with the government's investigation of bankrupt food distributor Fleming Cos. Read Kraft's press release announcing that the SEC will take no action here. AP has more.
- In a follow-up to a story I reported on last week on JURIST's Paper Chase, the SEC announced Tuesday that TD Waterhouse Investor Services will pay a $2 million civil fine to settle charges it made undisclosed payments to three investment adviser firms to lure their clients' business. AP has more.
- Italian Labor Minister Roberto Maroni has announced that his government may introduce unemployment benefits for thousands of workers laid off from national carrier Alitalia. AP has more.
- Telecommunications equipment maker Lucent Technologies Inc. is reducing benefits promised to thousands of its retirees for the second time this year in an effort to stem losses from an industry-wide slump. AP has more.
- Finally, the Federal Reserve boosted short-term interest rates from 1.50 percent to 1.75 percent. Read the Federal Reserve press release here. AP has more.