Former Enron executive’s lawyer rejects rumors

Enron Corp. founder and former chairman Kenneth Lay will never be indicted on charges stemming from the company’s collapse, despite recent speculation to the contrary, his lawyer said Monday.

“Ken Lay didn’t do a crime,” said Michael Ramsey, pictured above. “I don’t believe Ken Lay will be indicted at all, ever.”

Still, Ramsey said published reports during the weekend that his client would be indicted within weeks prompted him to request an update from federal prosecutors. He hopes to meet with them this week or next week.

Officials with the Justice Department did not immediately return a call seeking comment Monday.

Banking

Wachovia to purchase SouthTrust for $14B

Banking giant Wachovia Corp. is buying competitor SouthTrust Corp. in a deal valued at $14.3 billion, the companies said Monday.

The combination will create the largest bank in the Southeast and give Wachovia new leverage in the large Texas market, where SouthTrust has 60 branches in key areas, including Houston and San Antonio.

The enlarged Wachovia will have $464 billion in assets and market capitalization of $76 billion, maintaining its position as the nation’s fourth largest bank in terms of assets. It expects to close between 130 and 150 SouthTrust branches, Thompson said.

The SouthTrust name will eventually be dropped. The deal calls for Wachovia to exchange 0.89 shares of its common stock for each share of SouthTrust. The deal is expected to close in the fourth quarter.

Mutual funds

Firm settles allegations

The mutual fund company Pilgrim Baxter & Associates agreed to return $40 million to some investors and pay penalties of $50 million in a settlement of improper trading allegations.

The company was accused of allowing certain clients to “market time” their mutual funds, despite policies to the contrary.

Market timing, a type of quick, in-and-out trading, is not illegal but prohibited by many funds because it tends to skim profits from long-term shareholders. Regulators say funds that allowed selective market-timing while officially discouraging it committed fraud.

Energy

Gasoline prices drop

The average retail price of gasoline fell for the fourth week in a row to $1.937 per gallon, its lowest level since May 3, the government reported Monday.

The nationwide pump price for regular unleaded gasoline dropped by 4.8 cents, but prices still remain 44.1 cents above year-ago levels, according to the Energy Department’s statistical arm, the Energy Information Administration.

The biggest declines were registered in the Midwest, where prices fell by 6.8 cents. Fuel costs are highest on the West Coast, where prices average $2.20 per gallon.

According to a survey by AAA, the average price in Lawrence is $1.86 per gallon, down from $1.98 a month ago but up from $1.50 a year ago.