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Archive for Thursday, August 23, 2001

Briefcase

August 23, 2001

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Telecommunications: Slow sales cause job cuts at Tellabs Inc. plants

Telecommunications equipment maker Tellabs Inc. is cutting 1,000 jobs in the United States and Europe and plans to close a manufacturing plant in Ireland because of continued weak sales.

The job cuts, announced Wednesday, represent nearly 12 percent of its worldwide work force of 8,400 people.

About 700 of the job cuts were in the United States, including about 350 at the company's Bolingbrook, Ill., manufacturing plant and Lisle, Ill., headquarters, spokeswoman Jean Medina said. Those cuts were effective immediately.

Another 156 jobs will be cut when the company closes its plant in Drogheda, Ireland, by the end of the year and consolidates the work into plants in Shannon, Ireland, and Espoo, Finland.

Brokerage firm: PaineWebber fined $510,000 for inadequate training

Britain's financial regulator imposed a $510,000 fine on PaineWebber International Ltd. on Wednesday for lacking proper controls to prevent money laundering.

The Securities and Futures Authority, which is part of Britain's Financial Services Authority, said that "no instances of money laundering have been identified" but it still felt compelled to "severely reprimand" the brokerage firm for exposing itself and its customers to risk.

The British regulator accused PaineWebber U.K. of failing to maintain adequate accounting procedures, and failing to obtain and record sufficient records of customer details. Paine Webber also was reprimanded for failing to adequately train and supervise staff in anti-money laundering procedures.

Financial aid: Argentine stocks soar on IMF's $8 billion bailout

An international bailout plan sent Argentine stocks soaring Wednesday and left President Fernando De la Rua, above at left, upbeat for a change in the country's ongoing debt crisis.

But anti-government marchers returned to the streets Wednesday, only hours after the International Monetary Fund extended $8 billion to Argentina as protesters said they remained disenchanted with the lack of any signs of a recovery soon.

Stocks soared 8 percent amid market euphoria over news that Argentina had won fresh loans and new breathing space in its struggle to avoid default on $130 billion in debt.

Auditors: ExciteAtHome fires Ernst after 'doubt' raised in report

Embattled ExciteAtHome has fired the auditors who recently expressed doubts about the Internet company's chances of staying in business, but says the decision was completely unrelated.

According to a Securities and Exchange Commission filing Wednesday, Ernst & Young was dismissed Aug. 15 one day after it said in ExciteAtHome's amended annual report that it had "substantial doubt about the company's ability to continue as a going concern."

ExciteAtHome, a seller of high-speed Internet access, said it had hired PricewaterhouseCoopers LLP as a replacement.

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