Archive for Tuesday, October 22, 2002

Briefcase

October 22, 2002

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Aviation: United cuts more jobs

United Airlines is cutting 1,250 jobs and closing three reservation centers as part of cost-cutting efforts aimed at saving the troubled carrier about $100 million annually.

Monday's announcement came three days after United announced an $889 million third-quarter loss and said its operations have been losing about $7 million a day.

The Elk Grove Village, Ill.-based airline is restructuring in an effort to stay out of bankruptcy. Its announcement Monday came as it prepares to file an updated business plan with the federal government this week, hoping to strengthen its application for further financial assistance by detailing cost cuts and the results of weeks of concession talks with unions and lenders.

United is seeking a $1.8 billion loan guarantee from the Air Transportation Stabilization Board to meet impending debt payments and help it return to profitability.

Financial Services: Boston firm facing securities complaint

Massachusetts securities regulators have threatened to file an administrative complaint against Credit Suisse First Boston in efforts to force the company to separate its research and investment banking divisions to prevent conflicts of interest.

The bank's top lawyer sent a letter Sunday to Secretary of State William Galvin indicating the filing was imminent after the firm rejected a settlement demand last Thursday.

The bank agreed in January to pay $100 million in penalties to settle a separate investigation by the SEC. At the time, federal regulators were investigating allegations the firm demanded kickbacks of customers' profits from buying and selling new stocks.

The two sides have discussed a possible fine of $100 million, The Wall Street Journal reported Monday.

Investigation: Report says Stewart may be charged soon

Investigators at the Securities and Exchange Commission have notified Martha Stewart that they plan to recommend civil securities fraud charges against her related to her highly scrutinized sale of shares of ImClone Systems Inc., according to a published report.

The SEC gave Stewart what is called a Wells Notice, which gives her a chance to explain her actions before the full commission makes its final decision, the Wall Street Journal reported on its Web site Monday.

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