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Archive for Wednesday, April 21, 2004

Briefcase

April 21, 2004

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Former Boeing executive pleads guilty to charge

A former Air Force official pleaded guilty to conspiracy Tuesday for secretly negotiating for a job with Boeing Co. while she oversaw the Pentagon's consideration of a multibillion-dollar contract with the aviation giant.

Darleen A. Druyun, 56, of Vienna, Va., entered the plea in U.S. District Court to a single count of conspiracy, which carries a maximum five years in prison.

"I deeply regret my actions, and I want to apologize," she said.

She will be sentenced on Aug. 6, and faces a fine of up to $250,000, in addition to possible prison time.

Wall Street

Dow drops on remarks about interest rates

Wall Street tumbled Tuesday as Federal Reserve Chairman Alan Greenspan, confirming investors' fears about interest rates, hinted in congressional testimony that a rate increase was indeed expected. The Dow Jones industrial average lost more than 120 points as the market's earlier gains evaporated.

Greenspan told Congress that the banking system was prepared to deal with rising rates, which the market interpreted as a new signal that the Fed would tighten its policy sooner rather than later.

The Fed chairman didn't directly discuss interest rate policy in his remarks to the Senate Banking Committee but was expected to do so today, before the Joint Economic Committee.

Mutual funds

Janus leader resigns

The chief executive of Denver-based Janus Capital Group resigned Tuesday, becoming the latest figure to be brought down by allegations of improper trading practices in the mutual fund industry.

Janus spokeswoman Shelley Peterson said that regulators did not ask for Mark Whiston's resignation and that it was unrelated to any proposed settlements.

Whiston, 42, was replaced by board chairman Steve Scheid. Janus was accused by the Securities and Exchange Commission and state regulators in New York and Colorado of engaging in market-timing -- a type of rapid, in-and-out trading that can skim profits from long-term fund shareholders.

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