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#WORDS = 52 - 91
Special words bridgeline storage texaco bloomberg combine miles 00 000 0000 0001
texaco inc the no 3 u s oil company and the enron corporation plan to combine their louisiana natural gas pipelines and storage operations in a joint venture to reduce costs and expand services in the state the venture called bridgeline holdings will have more than 1 000 miles of pipeline and 7 billion cubic feet of storage the companies expect to complete the transfer march 1 texaco and enron the energy trader are seeking ways to cut costs amid declining profit margins on sales of the fuel credit bloomberg news
#WORDS = 318 - 660
Special words gory enablers nonconfrontational reprisals tack thomson toil admirably borrowing buckets
now that the enron wreck has moved to capitol hill perhaps investors will finally learn exactly who knew the gory details about the company s hidden leverage and when they knew them since deception appears to have been the enron way congressional subpoena power may be the only mechanism to get to the bottom of this disclosure disaster it didn t have to be this way although most of the usual suspects the brokerage firm research analysts the accounting firm the investment bankers performed admirably as enron enablers there is a group that could have asked tough questions to help investors assess the company s risks these professionals toil at the nation s debt rating agencies moody s investors service standard poor s and fitch being the largest they are independent people who analyze companies financial positions and assign to corporate debt issues various ratings reflecting the securities risks the fact that enron was able to hide significant leverage and other obligations from the public puts rating agencies at something of a crossroads while they have traditionally taken a nonconfrontational tack with the companies they follow shying away from the role of credit cops aggressive work from them is now more crucial than ever for investors trying to assess the risks lurking in the capital markets there are several reasons for that first rating agencies work on the risks inherent among issuers has grown more important as the corporate bond market has exploded in size according to thomson financial some 700 billion has been raised through issuance of corporate debt this year triple the amount five years ago and that s the debt investors know about we now know courtesy of enron that companies may carry additional obligations that are hidden from investors view shunted off the balance sheet but for which shareholders of the company remain on the hook because most of wall street research has sold itself to the devil rating agencies are one of the few sources of relatively independent analysis because rating agencies are exempt from regulation fd companies can give them information that they have not supplied to other analysts without fear of regulatory reprisals smart questions from rating agencies can produce key data but perhaps the biggest reason the rating agencies role is more important now lies in how the bond market has changed in recent years bonds at least those that carry a high investment rating used to trade calmly and quietly now many are as volatile as equities glenn l reynolds chief executive of creditsights an independent research firm in new york that analyzes debt issues has an explanation for this a 20 year veteran of debt analysis mr reynolds said bonds were much more volatile today because companies had been borrowing buckets of money based on projections instead of actual assets and performance so much of their borrowing has been based on projected growth in their cash flows and projected growth in their asset values so when those assumptions get upset so do the bonds he said as a result solid work from the rating agencies has never been needed more clearly the confidentiality of the data the agencies receive from companies must be protected but rating agencies must also acknowledge their pivotal role in helping investors to understand the risk picture at a company the people running these organizations have to realize that the world has changed leverage in the system has increased significantly and some of it is not even evident in financial statements i can t think of a more important job for the rating agencies in a very volatile market than to highlight the critical risk factors that are going to drive the price of assets mr reynolds said since they are in a seat to uncover important risk factors they should point them out rating agencies are our only hope graph shows the debt raised by corporations in the united states since 1995 source thomson financial
#WORDS = 416 - 858
Special words elkins letters vinson opinions securitization financings kravitt true expose malpractice
the dual role of the houston law firm vinson elkins in providing legal opinions for several enron entities and later in reviewing the propriety of those transactions has tarnished the firm and may expose it to a malpractice suit several law professors and lawyers say vinson elkins s role gained attention in a letter in august by a former enron employee sherron s watkins who suggested that the company hire a lawyer to take a look at some of the company s off balance sheet financings in the letter addressed to enron s chief executive then kenneth l lay she said vinson elkins should have no role in that inquiry enron could not use v e due to conflict they provided some true sale opinions on some of the deals the letter said ms watkins s letter became public two weeks ago as part of a congressional inquiry into the collapse of enron yet at enron executives request vinson elkins went ahead and conducted the review which was completed in october true sale opinions are issued in letters routinely written by law firms in connection with various types of financings the letters often accompany bond offerings by companies like automakers and credit card issuers which bundle their customer payments in a form of financing known as securitization while lawyers interviewed in the last few days about the matter were wary of criticizing vinson elkins until all the facts were known they said that as law firms issued more true sale opinions they will find themselves under increasing scrutiny i think this will be a topic that warrants some discussion said bruce markell a professor at the william s boyd school of law at the university of nevada indeed with enron s overall finances under investigation vinson elkins s ties to some enron transactions may come under scrutiny elizabeth warren a professor at harvard law school said whenever a dispute occurs after a transaction is completed law firms are always nervous about opinion letters they issued because they themselves could be named in a lawsuit the sherron watkins letter could indicate that vinson elkins has a lot to be nervous about asset securitization is now a 1 2 trillion market according to recent figures from the bond market association securitization is an efficient form of financing that helps fund lots of major industrial companies said jason h p kravitt a senior partner and head of the securitization practice at the law firm of mayer brown platt these opinion letters effectively state that based on the information available to the law firm the transaction in question appears legal and proper true sale letters are very carefully crafted to express what the law is mr kravitt said others said the letters often more than 10 pages long are carefully phrased their wording hedged usually lawyers don t speak to the business prudence just the legality of the transaction said todd zywicki a law professor specializing in bankruptcy at boston college two lawyers interviewed said that their firms shied away from writing such letters because of ethical concerns both declined to comment on vinson elkins s dealings with enron vinson elkins provided true sale letters for at least some of enron s financing vehicles an executive close to enron said though other law firms may also have been involved ms watkins s lawyer philip hilder said she had not seen the letters herself but that other executives had told her about them some lawyers say that at the very least the firm should have declined to conduct the review for enron how can you ask someone who created a transaction to investigate its propriety a lawyer asked that would seem to defy common sense joe householder a spokesman for vinson elkins said we are confident that the work we did for enron was performed to the highest ethical and professional standards he said yesterday that client confidentiality rules prevented him from commenting further a spokesman for enron declined to comment on the company s relationship with the law firm some legal scholars say vinson elkins s role in producing the true sale opinions could potentially expose it to a malpractice suit by enron now that enron is in...
#WORDS = 591 - 1262
Special words paxon memorandum maneuverings addicts prodded showered vetoing disadvantageous bluffing identifies
the white house is working through the republican party to scuttle campaign finance legislation before the house this week while protecting president bush from any political fallout advisers to mr bush said today with white house consent the republican national committee is lobbying to defeat the shays meehan bill the campaign finance overhaul measure that would ban the large unlimited political donations known as soft money an internal target list compiled by the republican party identifies 33 republicans who had previously voted for the bill when it was unlikely to become law these members are seen as undecided about how to vote this time and potentially available to back amendments that would ultimately weaken the legislation or kill it outright we need to ask them what they need for cover the internal document states and try to support our amendments the party s effort came as the house republican leadership mounted a similar drive to amend the bill republican party officials sent the target list to lobbyists hoping that they could try to persuade wavering lawmakers to oppose the legislation the white house s deliberations were just part of the intense maneuverings today by all sides as the house prepared for the campaign finance debate that is set to start on tuesday and end wednesday or thursday legislation to ban soft money contributions passed the senate last year in a 59 to 41 vote prodded by senator john mccain republican of arizona who put the bill at the center of his losing presidential primary run against mr bush in 2000 now its supporters are trying to pass the same legislation in the house where it is sponsored by representatives christopher shays republican of connecticut and martin t meehan democrat of massachusetts the two should have an advantage because an earlier version of the bill passed the house by comfortable margins in 1998 and 1999 as part of the lobbying against it marc racicot the republican national chairman today sent a memorandum to republican members of congress declaring that the various reform proposals are of vital concern to republican candidates mr racicot included a list of principles that mr bush outlined last year of what he would like a campaign finance bill to contain mr racicot did not specifically tell members how to vote but in the memorandum he wrote as you consider each amendment i recommend that you ask yourself whether what is being proposed reflects president bush s principles and makes our campaign finance system more fair even handed and balanced advisers to mr bush said the white house was working through the republican party to protect the president after the enron corporation debacle particularly aides said they did not want mr bush to take a visible role lest it appear as though he was interfering with efforts to tighten campaign finance laws party officials involved in the move said that they had the strong support of karl rove the president s chief political adviser but that mr rove hardly needed to convince them i m not sure karl s had to encourage them much a bush adviser said at the r n c they re like drug addicts the party thinks it would be a great idea to kick the habit but not right now dan bartlett the white house communications director said he was aware of mr racicot s memorandum but insisted it was absolutely not true that the white house was working through the party even though the white house effectively controls it there are no phone banks no calls being made to members from the president mr bartlett said we ve told people consistently that opponents of campaign finance legislation should not count on a veto from the president mr bush has told republican lawmakers who want him to work against the bill that he has no intention to inject himself in the fight and his advisers said it was likely that he would sign campaign finance legislation should it reach his desk still at the white house mr bush s advisers said the hope is that the bill does not get that far beyond enron mr bush s advisers said the president was reluctant to speak out because white house officials were split concerning whether the bill...
#WORDS = 256 - 590
Special words layton disguised buried colloquial queasy examinations messages descriptive rakoff decipher
a federal judge in manhattan ruled yesterday that e mail messages written by the vice chairman of j p morgan chase that refer to certain bank transactions as disguised loans could be used in a civil trial as evidence of potential fraud the case is one of the most contentious to emerge from the collapse of enron in it j p morgan is asking a court to force 11 insurance companies to pay about 1 billion to meet the terms of surety bonds that were issued to back oil and gas trades involving enron the insurers have countered that the transactions were not true commodity deals but rather secret loans from the bank to enron constructed by using an offshore entity tied to j p morgan known as mahonia ltd this was accomplished they contend by a circle of transactions that canceled out every element of the deals except for a debt owed by enron that money would have gone to j p morgan had enron not filed for bankruptcy j p morgan tried to have the e mail messages which were written by its vice chairman donald layton excluded essentially contending that the colloquial meaning of the words do not convey what mr layton intended but in his 10 page ruling the federal district judge jed rakoff dismissed the bank s position saying that the meaning of the words in the e mail messages was a question of fact for the jury to determine if the jury accepts defendants view of what the e mails are referring to as the jury reasonably might the term disguised loan is highly relevant and precisely descriptive of what is involved judge rakoff wrote the e mail messages were written over different months in 1999 and were part of a long running discussion within j p morgan about the appropriate way to treat transactions of the type that were entered into by enron the e mail messages indicate that j p morgan engaged in similar deals with a raft of companies around the globe we are making disguised loans usually buried in commodities or equities derivatives and i m sure in other areas mr layton wrote in one of the e mail messages with a few exceptions they are understood to be disguised loans and approved as such but i am queasy about the process in testimony given last week outside the jury s presence and cited in judge rakoff s decision mr layton said that he used the term disguised loans to mean that the transactions involved cash advances from the bank but without the controls placed on a normal loan in essence he testified the term was meant to indicate that the loans may be disguised from the bank itself not from others indeed mr layton worried in the e mail message that j p morgan itself might not be able to keep track of its loan exposure because the transactions were buried in the trading books the inability of investors to decipher enron s true financial condition because of deals like the ones structured by j p morgan has been a central issue in the examinations of the company s collapse a principal question in the case has been whether the insurers knew the true nature of the transactions when they issued the surety bonds as j p morgan contends which would arguably make them liable for payment but the insurers counter that they never would have provided bonds for the transactions if they had known them to be loans
#WORDS = 384 - 620
Special words cigna letterman beardstown ladies lottery 731 hyperion 8685 nightline displace
enron paid huge bonuses as its profits were inflated enron paid its executives huge one time bonuses last year as a reward for hitting stock price targets ending in 2000 the very time investigators now say when corporate officials were improperly inflating the company s profits by as much as a billion dollars legal experts said the payments could provide strong evidence of a motive for the financial machinations that investigators believe distorted enron s reported performance and ultimately led to its demise growth rate is revised up sharply with consumer spending holding up much better than anyone had expected the american economy grew at a 1 4 percent annual rate in the fourth quarter the commerce department reported in a sharp upward revision of its original estimate the new rate was surprisingly vigorous for a nation in recession abc makes a play for letterman abc trying to challenge nbc and cbs for the sizable revenue of late night entertainment made a strong bid this week to lure david letterman left the cbs star in a move that would displace ted koppel and nightline mr letterman has been seriously considering the offer for several days executives involved in the negotiations said top contributors advised cheney eighteen of the energy industry s top financial contributors to the republican party advised vice president dick cheney s national energy task force last year according to interviews and election records i r s steps up audits of poor the internal revenue service sharply increased audits of the working poor last year while reducing to record low levels those of the highest income americans and big companies new data showed the overall audit rate for individuals rose for the first time since 1995 to 1 in every 174 income tax returns from 1 in 202 in 2000 government investigates cigna unit cigna said the justice department and the department of health and human services are investigating the medicare cost reports at a cigna unit in new mexico profit concerns drag stocks down stocks fell on concern corporate profits would rebound more slowly than expected the standard poor s 500 stock index fell 3 16 points or 0 3 percent to 1 106 73 the dow jones industrial average lost 21 45 points or 0 2 percent to 10 106 13 the nasdaq composite index slipped 20 39 points or 1 2 percent to 1 731 49 echostar results beat expectations echostar which operates the dish network and plans to take over its larger rival hughes electronics posted a loss of 42 9 million or 9 cents a share compared with a loss of 184 2 million or 39 cents in the year earlier quarter revenue rose 43 percent to 1 15 billion from 805 4 million a year ago the results exceeded analysts estimates its shares rose 2 52 or 11 percent to 26 12 advertising dispute over lottery a dispute has erupted between agencies over the lucrative account of the pennsylvania state lottery stuart elliott advertising settlement for beardstown ladies hyperion press the publisher of books by the beardstown ladies investment club has settled a lawsuit over the club s advice photo yesterday dow industrials 10 106 13 down 21 45 nasdaq composite 1 731 49 down 20 39 10 yr treasury yield 4 87 down 0 02 the euro 0 8685 up 0 0025 the dollar 133 65 yen down 0 62 today shows personal income figures from july dec 2001 january figures due at 8 30 a m eastern time expected 0 1 today shows construction spending figures from july dec 2001 january figures due at 10 a m eastern time expected 0 2 graph shows echostar share prices for the week
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Special words prayer church 00 000 0000 0001 0002 0003 0004 0005
a prayer service was held yesterday in houston for j clifford baxter 43 the enron corporation executive who was found dead in his car on friday many former enron employees attended the service at the community of faith church mr baxter s death was ruled a suicide james estrin the new york times
#WORDS = 249 - 607
Special words boies drubell bengiveno thomsen office pursuant perfectly privilege profiting unreasonable
the securities and exchange commission yesterday identified andrew s fastow the former chief financial officer of enron as a possible target of its investigation into the company s collapse the commission asked a federal judge to order him to appear before commission investigators an attorney for mr fastow richard drubell said mr fastow was willing to appear before the s e c in january he added that he expected mr fastow would meet early next month with investigators from a congressional committee that is also investigating what happened at enron mr fastow himself appeared with another of his lawyers david boies at a news conference yesterday in new york but declined to answer any questions other than to say that he had not been out of the country recently mr fastow was chief financial officer of enron until he was replaced in october shortly after the s e c investigation began the s e c said in its filing yesterday that mr fastow had created limited partnerships in which he had a personal interest profiting in the amount of 30 million enron s spectacular collapse it said was related in part to these limited partnerships until now mr fastow had not spoken to reporters or investigators at all on tuesday a staff member of the congressional committee studying enron had complained that it had been unable to find mr fastow the s e c filing yesterday in federal district court in washington said it was investigating whether mr fastow and others have violated the anti fraud provisions of the federal securities laws it said that mr fastow s lawyers had agreed that he would testify yesterday and today but notified the s e c on tuesday night that he would not appear this is very straightforward said linda c thomsen an associate director of enforcement for the s e c he has essential information for a legitimate investigation he needs to testify or assert his rights pursuant to the fifth amendment at a news conference mr boies declined to say whether mr fastow would invoke his fifth amendment privilege against self incrimination but he emphasized that mr fastow had not been involved in everything that happened at enron and said that the chief accounting officer at the company had not reported to him he indicated that mr fastow was familiar with the partnerships that enron said allowed him to make 30 million but did not necessarily know much about other partnerships including one on which arthur andersen enron s auditors said it had been misled the s e c said that mr fastow had been subpoenaed to testify on nov 14 but that the appearance had been delayed at the request of a lawyer for mr fastow after that however the united states attorney s office for new york asked to talk to mr fastow and that was scheduled for yesterday with the s e c to sit in at the interview but the office decided not to proceed and the s e c then said it expected mr fastow to appear before it mr drubell said the request delivered on friday that mr fastow appear yesterday was unreasonable we were not scheduled to formally testify before the u s attorney he said while we are perfectly happy to appear before the s e c to testify formally we could not do so on two working days notice andrew s fastow right enron s former chief financial officer did not answer questions yesterday at a news conference in the office of one of his attorneys david boies left in new york nicole bengiveno the new york times
#WORDS = 84 - 147
Special words glamour lakers festival nets rethinks tribeca celtics kidd overcoming grief
looking at enron s assets the securities and exchange commission is stepping up its investigation of enron by examining the valuation of billions of dollars of its assets business day page c1 g o p rethinks medicare caught in the crossfire among doctors hospitals nursing homes and h m o s house republicans are revising their plan to provide medicare drug benefits page a13 glamour and remembrance thousands attended the first tribeca film festival held near ground zero the festival was as much about overcoming grief as it was about glamour page b1 nets celtics and lakers take 3 1 leads in playoffs jason kidd not seming too troubled by the cut over his right eye scored 24 points to lead the nets to an 89 79 victory over charlotte boston defeated detroit 90 79 and the lakers rallied past san antonio 87 85 sportsmonday photo reuters
#WORDS = 373 - 761
Special words considerably governments proximate allowance blazed contingencies darkening haves nots rainy
e mail krugman nytimes com many americans are surprised at the speed with which assurances that immense federal surpluses were here to stay gave way to the reality of deficits some of us however aren t surprised we re simply following a trail blazed in places like richmond and austin in the 1990 s most states had republican governors and they applied the same strategy using what me worry forecasts and bogus accounting to justify tax cuts for the affluent that the bush administration applied at a national level in 2001 in both cases the consequences were predictable the difference is that state governments are generally prohibited by their constitutions from borrowing to cover deficits eventually the federal government too must live within its means but spin and denial can delay the reckoning state chickens come home to roost a lot faster in other words the state of the states is the shape of national things to come how bad is the state fiscal crisis the national governors association recently reported that its members faced a combined shortfall that is a gap between projected revenue and projected spending of at least 40 billion and quite possibly 50 billion the latter number would be almost 10 percent of states budgets a very large number indeed if 10 percent doesn t sound that big to you remember that much state spending like much federal spending cannot be cut especially on short notice a budget shortfall of 6 5 percent in the early 1990 s led to severe cuts in services and forced 44 states to raise taxes this one looks considerably worse how did states get themselves in this fix the biggest proximate cause of the budget crunch is the end of the great 1990 s boom second place goes to surging medical costs expenses for homeland security add a final insult but stuff happens why didn t states prepare for a rainy day although they can t borrow in bad times state governments can accumulate reserves in good times instead however many governors acted as if the boom would never end they increased spending though not all that much spending by state and local governments was about the same share of g d p at the end of the 1990 s as it was at the beginning more important they cut taxes now it s true that state governments raised taxes in the early 1990 s but as new work by the center on budget and policy priorities shows they didn t cut the same taxes they had previously raised increases in regressive taxes that is taxes like the sales tax which bear most heavily on lower and moderate income families by and large were never reversed instead states cut taxes that bear most heavily on upper income families the end result was a redistribution of the tax burden away from the haves toward the have nots a family earning say 30 000 per year pays considerably more in state taxes than a family with the same constant dollar income did in 1990 while a family earning 600 000 per year pays considerably less the way for these selective tax cuts was cleared not just with forecasts that made no allowance for contingencies but with creative accounting worthy of enron for example in 1999 the governor of texas yes him justified new corporate tax breaks with a budget that not only understated medicaid costs by 550 million but hid regular payments for nursing care and other services by moving them from the last month of fiscal 2001 to the first month of 2002 just last year with the fiscal picture already darkening gov james gilmore of virginia who resigned as head of the republican national committee after his party lost the virginia and new jersey state houses evaded a trigger rule that was supposed to postpone tax cuts in the event of a revenue shortfall he booked an estimate of the entire value of future payments from tobacco companies as current revenue now the states must deal with the effects of past chicanery even as they face recession soaring health care costs and the fiscal impact of terrorism the result will be layoffs of teachers and policemen medical care denied to the poor delayed repairs to roads and bridges and eventually when it can no longer be avoided tax increases and why do i think i know whose taxes will go...
#WORDS = 557 - 933
Special words nextel oni 694 815 adobe catalysts crosscurrent cushioned dietze 563
stocks fell yesterday led by a broad based decline in technology issues as worries about corporate accounting practices continued to roil the market since accounting irregularities have emerged at the center of enron s troubles investors have punished companies whose accounting procedures are being scrutinized yesterday the market focused once again on i b m and nvidia over questions raised last week about their accounting investors were also skittish about cisco systems which fell 28 cents to 16 81 after an article in the new york post on monday called its partnerships into question it just seems like a never ending barrage of revelations said jeffrey saut chief investment strategist at raymond james associates it s who do you trust me or your eyes the technology heavy nasdaq composite index dropped 54 59 points or 3 percent to 1 750 61 its lowest close since nov 2 the dow jones industrial average fell 157 90 points or 1 6 percent to 9 745 14 the broader standard poor s 500 stock index lost 20 84 points or 1 9 percent to 1 083 34 concerns about accounting are acting like a wet blanket on all the market averages said david g dietze president and chief investment officer of point view financial services unfortunately this earnings season is winding down here investors can t hope for any kind of positive catalysts in terms of earnings announcements or communications coming out of companies that is going to allow the market to shake off the torpor of accounting concerns i b m fell 3 35 to 99 54 continuing a decline that began on friday after the new york times reported that the company had not fully disclosed the sale of a business when it reported its earnings last month nvidia dropped 3 80 to 53 55 the company disclosed last week that its accounting procedures were being investigated by the securities and exchange commission investors also punished circuit city sending its shares down 4 29 to 22 11 on worries that the company s remodeling costs could exceed expectations analysts said buyers might also be shunning the stock because of concerns about its credit card operation financial services stocks also moved lower as investors worried that the difficulties at some big companies might spread to their investment houses citigroup the most active stock on the new york stock exchange lost 1 91 to 42 22 j p morgan chase dropped 1 02 to 29 03 morgan stanley dean witter fell 2 84 to 47 04 lehman brothers slid 2 60 to 55 43 and merrill lynch lost 1 77 to 46 50 among technology issues software stocks dropped veritas lost 2 48 to 34 16 microsoft fell 1 40 to 58 83 peoplesoft lost 1 90 to 29 10 oracle 70 cents to 14 79 and adobe systems 1 13 to 34 56 ciena slipped 28 cents to 8 45 after it announced on monday that it would acquire oni systems oni systems was up 40 cents to 5 94 shares of nextel plummeted 1 31 to 3 55 after the company said that its international unit nii holdings would take a pretax noncash restructuring charge of 1 billion to 2 billion for 2001 nextel was the most actively traded stock on the nasdaq treasury prices fall by reuters bond prices fell yesterday after a report showed that starts of new housing jumped in january at their strongest pace in two years providing more evidence that consumers remain willing to spend as the economy appears ready to pull out of recession but the market s losses were cushioned as new worries about corporate accounting and indebtedness pounded stocks prodding some investors to grab short term risk free government securities there s two sorts of crosscurrents in the market said kurt harrison head of government bond trading at banc of america securities the first one is the strong economic data which points to a recovery that is gaining momentum and which should result in higher interest rates as the fed raises interest rates in response to it the second crosscurrent he said involves fears about credit quality corporate defaults and accounting along with the ever present fear of terrorist threats the price of the 10 year note fell 3 32 to 100 2 32 its yield which moves in the opposite direction from the price rose to...
#WORDS = 248 - 502
Special words clydesdale pony shetland maximization mitigation spanning disappears elektro enables evaluating
the enron corporation is seeking permission to bundle some of its core assets to form a smaller energy company that could be spun off by the end of the year as a separate unit operating outside the company s chapter 11 bankruptcy proceedings enron executives who have been floating such an idea for weeks made a formal proposal today to creditors in the bankruptcy case in new york they said the new company would operate with about 10 billion in assets and would offer the best opportunity for creditors to maximize recoveries the new company tentatively called the opco energy company and based in houston is expected to be made up of natural gas pipelines and power operations spanning the americas including portland general electric and elektro a brazilian power company the move would essentially mean the transformation of enron from a sprawling global energy and trading concern that once generated 100 billion in revenue to a midsize energy company that operates power plants and pipelines primarily in north and south america stephen f cooper the interim chief executive said that it was not a reorganization plan but a process by which enron and its creditors could rapidly increase the value of the company we believe this process will lead to the maximization of value of enron s core energy assets and the mitigation of risk by removing viable operations out from under chapter 11 mr cooper said in a statement this enables enron s creditors to realize value from the company s power and pipeline roots through an expedited process the creditors which include some of the nation s largest banks are evaluating the proposal it is unclear what kind of support there is for creating a smaller operating company a spokesman for the creditors committee could not be reached for comment tonight the bankruptcy court would also need to approve the move but the formation of a smaller energy company would essentially mean that the enron name disappears and that the units and assets that remain in bankruptcy protection would be liquidated the new company would have about 15 000 miles of pipeline assets 6 700 megawatts of power generation and about 12 000 employees enron officials said moving the company s core assets out from under the bankruptcy proceedings would allow them to grow more rapidly and form a sustainable corporation because they would not be under the cloud of the bankruptcy process the new company they said could generate about 3 billion in revenue and a profit of about 350 million in the first year of operation the question is whether the creditors who would receive a stake in the new company believe that waiting for the new enron to deliver is a better option than liquidating all the assets more immediately enron officials are betting that this is the best approach what everyone wants is a clydesdale mr cooper told reporters after the meeting with creditors we don t want it to shrink into a shetland pony
#WORDS = 432 - 792
Special words reshaped cecil perry evangelical flamed wakeham boies cutthroat libby notoriety
the cast of characters in the enron drama is lengthy and their relationships are complex the executives kenneth l lay gained national fame as the chairman and chief executive of enron a company that reshaped the nation s energy markets and notoriety as the company flamed out spectacularly a man with a doctorate in economics and an evangelical belief in free markets mr lay turned an old fashioned gas pipeline operator into the world s biggest energy trader but when enron faltered he could not explain the company s finances to the satisfaction of wall street or of dynegy inc a rival that offered to rescue enron but ultimately walked away from a proposed merger mr lay s longtime no 2 jeffrey k skilling fostered a culture at enron described as creative and cutthroat he led the company into new markets setting up trading desks for paper chemicals water rights and high speed internet service mr skilling was chief executive for six months resigning last august he said last month that he was stunned by the company s rapid decline enron replaced its chief financial officer andrew s fastow in october seeking to placate investors and regulators who had begun questioning a set of unusual partnerships he arranged to shift debt off the company s books two weeks later the company revised its accounting for the partnerships wiping away about 600 million in profits it had reported over the previous five years mr fastow earned 30 million from his investments in the deals the board enron recruited prominent people to its board of directors but given the company s collapse analysts give them low marks the directors include wendy l gramm the former chairwoman of the commodities futures trading commission and the wife of senator phil gramm republican of texas ms gramm serves on the board s audit committee which is responsible for the company s accounting and financial reporting until 1998 she owned enron shares when the gramms decided that the stock presented conflict of interest issues she sold her shares for 300 000 since then the company has placed her board pay in a deferred account that can be tapped later also on the board is dr john mendelsohn president of the m d anderson cancer center one of houston s most prestigious institutions enron has donated more than 600 000 to the center in the last five years another audit committee member lord john wakeham was in margaret thatcher s inner circle when she was britain s prime minister the lawyers no corporate crisis would be complete without celebrity lawyers and the enron debacle has enlisted some of the biggest david boies who took on microsoft in the federal antitrust suit is representing mr fastow robert s bennett who represented president bill clinton in the paula jones scandal is representing enron in washington the politicians mr lay kenny boy to his friend george w bush is a major contributor to both political parties mr lay and other enron executives have given more than 550 000 to mr bush in his political career enron s executives met with vice president dick cheney four times last year to discuss energy matters when mr cheney was chief executive of halliburton a unit of the company built houston s new baseball stadium enron field before he became the president s top economic counselor lawrence b lindsey was a paid adviser to enron karl rove mr bush s chief political strategist and i lewis libby mr cheney s chief of staff were investors in the company the ties reach far beyond the white house the republican national chairman marc racicot the former governor of montana was a lobbyist for the company until last week in texas mr bush s successor rick perry has been criticized for appointing a top enron executive to the state s public utility commission the accountants joseph f berardino chief executive of the accounting firm arthur andersen enron s longtime auditor is caught in the enron net in december he told congress that enron might have illegally hidden information from its auditors last week andersen disclosed that its employees had destroyed documents related to its auditing of enron even after the government began...
#WORDS = 374 - 756
Special words wholesalers bristol myers evans jacobs sweig dolan wholesaler incentives inventory
federal securities regulators are investigating whether bristol myers squibb overstated revenue last year by giving wholesalers incentives to buy extraordinary amounts of the company s prescription drugs the company said yesterday there is an inquiry and we re cooperating fully said bonnie jacobs a company spokeswoman ms jacobs said that the company had been talking to regulators at the securities and exchange commission since april about the purchases by wholesalers and that it thought its accounting has been completely appropriate the s e c has not told the company that it has done anything improper she added a spokeswoman for the s e c declined to comment yesterday analysts say that many pharmaceutical companies frequently give wholesalers incentives to buy more than they need to help the drug makers meet wall street s expectations at the end of a quarter for example a drug company may tell a wholesaler that it will soon raise its prices which prompts distributors to buy more of the company s products than they need to meet the demand at pharmacies the practice allows the drug company to temporarily increase sales but eventually the wholesaler must use the inventory sitting in its warehouses and the drug company s sales fall over time some analysts call the practice channel stuffing you re stealing from the future said richard t evans an analyst at sanford c bernstein in early april shares of bristol myers tumbled after peter r dolan the company s chairman announced that wholesalers were holding hundreds of millions of dollars in excessive inventories of the company s products which would reduce revenue this year the same day mr dolan said that richard lane president of the company s pharmaceutical business would leave the company two weeks later frederick s schiff the chief financial officer also left industry analysts estimate that wholesalers were holding about 1 billion or more of excessive inventories of bristol myers products in april the company gave the wholesalers incentives to buy the inventory last year as sales of certain products began to decline after generic companies won court battles that allowed them to sell lower priced versions analysts say that bristol myers use of the accounting maneuver far exceeds what other large drug companies have done they said it was too early to say what the investigation could mean for bristol myers which has had repeated setbacks in the last year and is often mentioned as a takeover candidate the company s shares fell by more than 15 percent yesterday before recovering somewhat they closed at 22 11 down 1 04 the company s stock has lost more than 50 percent of its value since march 1 neil b sweig a pharmaceutical industry analyst with fulcrum global partners a new york brokerage firm for institutional investors said in the worst case the preliminary investigation could lead to a restatement of the company s earnings or it may lead to nothing he said in the wake of recent accounting scandals at enron worldcom and other companies mr sweig said securities regulators have become more aggressive you re kind of guilty until proven innocent he said mr evans said bristol myers might benefit if the s e c forced it to restate earnings because it would help clear up the uncertainty surrounding its financial statements that may be keeping some potential acquirers away mr evans like many other analysts said he thought that bristol myers could not survive on its own they need a deal he said clearing up the accounting would help get shareholders a higher price news of the investigation was reported yesterday by the financial times bristol myers s underlying problem is that its laboratories have not been able to produce new blockbuster drugs to take the place of those losing their patent protection its aggressive attempts to keep generic companies from selling versions of three top selling products taxol for cancer glucophage for diabetes and buspar for anxiety ultimately failed and have resulted in a federal antitrust investigation and several lawsuits desperate for a new product bristol agreed in september to pay imclone systems inc up to 2...
#WORDS = 211 - 381
Special words korea lee kepco edf chul allot chae thermoelectric hyung ki
south korea took a big step today toward opening up its state run power generation industry to foreign investors the state owned korea electric power corporation or kepco the only company in the nation involved in power generation said it would spin off six independent companies in november the company s first concrete move toward privatization in its 38 year history later this month the government will offer the six companies for sale to both foreign and domestic buyers kepco will allot 42 power generation facilities either currently in operation or under construction to five hydro and thermoelectric power companies lee hyung chul director of restructuring at the utility said nuclear power plants will be separated into a single subsidiary korea electric will then transfer 16 000 of its workers or 46 percent to the individual companies it will also transfer to the companies 34 trillion won or 28 7 billion of its 62 trillion won in total assets as well as 14 8 billion of its 27 billion in total debt mr lee said sales of assets to foreign buyers will not however occur until next year at the earliest said lee ki ho a director of the ministry of commerce industry and energy it s not like selling individual pencils from a pack he said noting the complex and time consuming process involved in such asset sales although no foreign company has officially notified korea electric of its intentions to buy assets mr lee said industry giants had expressed interest including the state owned utility edf in france enron of the united states and aes of germany opening up the power generation market will break a decades old monopoly in the utility industry here mr lee said beginning next year private companies both foreign and domestic will be allowed to build power plants in korea he said but the labor union representing korea electric s workers which demonstrated against the plan earlier this year in its first protest ever said such changes would hurt korean industries and households this is not just a matter of job security said kim chae ro a representative of the union resolving kepco s debts through asset sales will destroy the company the changes will lead to an industry where suppliers wield the sword
#WORDS = 284 - 604
Special words feder drexel lopucki incendiary slap mills tamp administering burnham lambert
just days before enron filed for bankruptcy and laid off 4 000 people it paid out 55 million in bonuses to about 500 employees according to several people who had dealings with the company yesterday evening an enron spokesman confirmed the bonuses describing them as retention incentives for crucial employees bankruptcy experts said that the payments were almost certain to be closely scrutinized and probably challenged by enron s creditors separately the labor department said yesterday that it had opened an investigation into how enron managed its employees 401 k retirement plans those accounts were heavily invested in enron shares and company rules prohibited many employees from diversifying their holdings the labor department said that employees had lost up to 90 percent of the value of their accounts enron s employees have gotten the short end of the stick in the sudden collapse of this company said labor secretary elaine l chao enron has said that a temporary freeze that kept some employees from shifting retirement investments was long planned and allowed another company to take over the job of administering the plan enron declined to say how much was paid out in bonuses who received the money or what the range of payments was executives of companies entering bankruptcy defend such payments as necessary if there is to be any hope of reorganizing as a going concern but they often prove to be incendiary for example in 1990 when it was disclosed that drexel burnham lambert had paid key executives some 250 million in bonuses before filing for bankruptcy creditors and the government reacted with outrage in the end after court hearings on the issue the drexel estate sued the employees to get the money back the payments by enron are substantially high and that means it probably does become an issue in the bankruptcy case said james feder a bankruptcy lawyer with feder mills a law firm in los angeles the question might come up as to whether there was fair consideration given for the amount of these bonuses and whether they were reasonable under the circumstances if creditors can convince the court that the employees were overpaid or that the payments were made to keep money out of creditors hands a much more difficult argument to prove then the judge can void the payments and order the money returned said lynn lopucki a law professor at the university of california at los angeles to tamp down such disputes a company typically will file a request as part of its bankruptcy filing to make payments to certain employees and not proceed with the payments until receiving a judge s approval mr lopucki said yesterday mark palmer an enron spokesman defended the payments as necessary in order to protect and maintain the value of the estate such payments are done in every bankruptcy he said adding that the payments were made to employees at all levels of the organization employees who lost their jobs after enron filed for bankruptcy protection on sunday were told they may receive no more than 4 500 in severance pay they also were told to petition the bankruptcy court to cash in unused vacation days in another legal slap at enron a shareholder lawsuit filed late tuesday accused 29 enron officers and directors of engaging in massive insider trading and making false and misleading statements about the company s financial performance while selling about 1 1 billion worth of stock over the last three years an enron spokesman declined to comment on the suit which was filed by amalgamated bank which is known to be an activist shareholder
#WORDS = 779 - 2333
Special words cliff greenwood fortune waxman mclean multiple baxter recollection gist heartbroken
following are additional excerpts from the testimony of enron s former chief executive jeffrey k skilling before a hearing of the house energy and commerce subcommittee on thursday as recorded by federal news service inc a full transcript was not available thursday night mr skilling was questioned by representatives henry a waxman democrat of california james c greenwood republican of pennsylvania billy tauzin republican of louisiana and edward j markey democrat of massachusetts a full transcript is available online nytimes com business mr waxman who came up with the idea of the partnerships mr skilling which partnerships specifically i mean enron had literally thousands of partnerships and they came from various operating business units mr waxman so you knew there were thousands of partnerships did you know you said that to your knowledge you didn t have any idea that enron was in a shaky financial situation and you don t think you ve misled others but in march 2001 bethany mclean a reporter with fortune magazine first raised questions about enron s financial condition she wrote in fortune magazine that the company s financial reports were missing crucial information she asked a simple question in the article that no one could seem to answer how exactly does enron make its money mr skilling in response to this criticism you reportedly called ms mclean unethical for not doing her research three enron executives flew to new york to try to convince fortune s editors that ms mclean was wrong kenneth lay also called fortune s managing editor to complain mr skilling it s clear now that ms mclean was right and that you were wrong she was asking all the right questions about how enron made its money if that s the case it appears as if you were trying to bully someone who was asking very basic questions about enron how could it be that she would know basic questions about enron and raise them and you didn t seem to know about them you got very upset sir didn t you mr skilling i very specifically remember the telephone conversation that i had with the fortune reporter as a matter of fact she had been working on a story it was my understanding for about a week and they had she had called up and said she wanted 15 minutes of time to discuss some issues remaining issues related to this report i said fine and it was between two meetings 9 30 between 9 30 and 9 45 some tuesday it might have been a monday morning i forget the specific date but there was 15 minutes carved out of my calendar to spend some time with the fortune reporter she called up and started asking some very very specific questions about accounting treatment on things i am not an accountant and i could not answer them and i said to her look we can have our people come up i will have our chief accounting officer i will have our chief financial officer i will have whoever you want come up to explain these specific transactions i have got six minutes left before i have to be in a meeting and i can t get into the details and i am not an accountant and she said well that s fine we re going to do the article anyway and i said if you do that i personally think that s unethical because we are making available whatever resources you need to get full and fulsome answers to the questions that you have and the next day our chief financial officer and our chief accounting officer flew to new york at enron s expense to sit down not with the editors but to sit down with the reporter on that story and help her understand the questions that she was asking mr waxman and was her article critical mr skilling yes it was mr waxman and did that raise any concerns in your mind that maybe she knew something that you should know about mr skilling i think the gist of it again my recollection of the gist of the article is basically she was saying that we continue to sell at a high p e multiple and that was at a time when anyone that had a high p e multiple was being absolutely hammered in the stock market this was february march of 2001 and so i think the basic accusation was that we were at a high p e multiple and that p e multiple was too high mr...
#WORDS = 292 - 571
Special words spitzer borg chertoff blodget intimidate autonomy coexistence rosier faulted negotiating
the investigation into the conduct of stock analysts spread yesterday as federal and state regulators joined the new york attorney general eliot l spitzer in pressing to eliminate conflicts of interest on wall street state securities regulators who have said proposed changes of brokerage firm research are too weak formed a task force to study the issues that have arisen in mr spitzer s investigation of merrill lynch and its former star analyst henry blodget mr spitzer s office has pressed merrill to make some changes in its research system and is negotiating a settlement that could include more autonomy for the firm s analysts and a payment of as much as 100 million the justice department is considering whether to start a criminal investigation into the analysts conduct a spokesman for michael chertoff who heads the criminal division of the justice department said that mr chertoff had indicated that the issue of analysts conflicts of interest was something we would need to take a look at mr spitzer has said that he may file charges against merrill mr blodget or other current or former merrill analysts for almost a year he has been investigating whether merrill used its stock ratings and research to reward or punish companies that were clients or prospective clients two weeks ago he released internal notes from merrill analysts that appeared to show that their private opinions conflicted with their rosier public views mr spitzer is also calling on congress to pass legislation requiring analysts to disclose financial ties between their firms and the companies they cover he is scheduled to meet in washington today with the house minority leader richard a gephardt and representative john lafalce of new york also a democrat to promote an amendment to a republican bill about corporate financial disclosure that bill introduced by representative michael g oxley republican of ohio and the chairman of the financial services committee is scheduled for debate on the house floor today later in the day mr spitzer is scheduled to meet with harvey l pitt the chairman of the securities and exchange commission to discuss changes mr spitzer has proposed for wall street officials of the commission the main regulator of securities firms are concerned about mr spitzer s demanding changes which would not conform with federal regulations among the changes mr spitzer has proposed is a strict division between the research and investment banking operations of wall street firms most big brokerage firms have rules to limit interaction between analysts and investment bankers but make exceptions after the collapse of enron and several other companies that analysts were recommending some regulators have called for tighter restrictions to prevent analysts from being influenced by their employers desire for banking business in a letter sent last week to federal regulators state regulators faulted them for not going far enough in their proposed changes joe borg the chairman of the north american securities administrators association called for strong anti retaliation rules that would provide severe penalties for attempts to intimidate or punish an analyst for producing negative research reports if those lesser remedies fail mr borg wrote in the letter regulators should contemplate a ban on the coexistence of analyst research and investment banking within a firm mr borg said in an interview that the states would share resources to determine where there are violations of law and where there are practices that should be changed
#WORDS = 309 - 572
Special words schroeder converged expeditions administrations sick weighs 1992 deterred kinds charged
a senate panel sought more information today about contacts between white house officials and enron sending a letter to the bush administration asking for details of communications involving enron and eight regulatory agencies the requests came from the senate governmental affairs committee whose chairman joseph i lieberman of connecticut was the democratic nominee for vice president two years ago mr lieberman s aides emphasized that the committee was seeking records that date to 1992 and cover the administrations of both george w bush and bill clinton the committee is trying to find out whether the various federal agencies charged with overseeing or regulating part of enron s business could have done something to detect or prevent the problems that led to the company s downfall and the losses of thousands of jobs and billions of investors and employees dollars mr lieberman wrote to andrew h card jr the white house chief of staff what oversight did federal regulators provide to enron s activities the letter continued was there more that could or should have been done to avert the collapse do agencies need additional authorities to be able to help provide effective oversight the request also seeks information about white house contacts with enron regarding the bush administration s energy policy a white house spokeswoman anne womack said tonight that the administration was reviewing the letter but ms womack added the american people are sick and tired of these kinds of open ended fishing expeditions jill schroeder an energy department spokeswoman said the agency had already been processing a freedom of information act request for enron related documents going back 10 years we are going through documents going back to 1992 and we would hope that senator lieberman will be just as interested in the contacts the clinton administration had with enron ms schroeder said mr lieberman s spokeswoman leslie phillips said the committee was interested in contacts between enron and both the clinton and bush administrations the white house weighs in on all sorts of important policy and energy and securities issues and the committee cannot ignore this ms phillips said adding it would be wrong to run a partisan investigation but it s equally wrong to be deterred from a legitimate inquiry since last year congressional democrats have been aggressively seeking information about enron s contacts with the white house those efforts have converged at the general accounting office the investigative arm of congress which is suing the white house to obtain records of meetings with enron and other energy companies in explaining his decision to sue to get the records the head of the g a o david m walker cited among other factors demands for the information by four senate democratic leaders last week the governmental affairs panel issued subpoenas to enron and its former auditor arthur andersen seeking information about communications they had with the white house and federal agencies about energy policies and related matters the agencies covered by today s subpoena include the securities and exchange commission the commodity futures trading commission the federal energy regulatory commission the labor department the commerce department the energy department the overseas private investment corporation and the export import bank of the united states senator joseph i lieberman has led the senate governmental affairs committee s enron investigation the committee is asking for records on enron oversight under the bush and clinton administrations paul hosefros the new york times
#WORDS = 259 - 522
Special words item arnold freeedgar hu 7a tortuous www shriveled enterprise retrieval
even with the cynicism about corporate financial statements generated by the enron collapse investors can still learn plenty about a public company s performance the known risks it faces in the future and its current problems but that information almost certainly won t be found in the slick annual report mailed to shareholders getting the substantive stuff requires examining the dry disclosure documents that most shareholders quickly pitch into the trash the most important of these are the annual 10 k and the three quarterly 10 q forms that companies are required to file with the securities and exchange commission access to those documents has become much easier since the mid 1990 s when the s e c embraced electronic filing and the internet these documents can be read online at the s e c s web site www sec gov at the privately owned freeedgar www freeedgar com and other web sites and often from links at a corporation s own web site usually in the area called investor relations edgar stands for electronic data gathering analysis and retrieval prof jerry arnold founder of the s e c and financial reporting institute at the university of southern california recommends that investors unaccustomed to the 10 k pay close attention to item 1 the description of the enterprise item 3 legal proceedings item 6 selected financial data item 7 management s discussion and analysis of financial condition and operations item 7a market risk and item 8 financial statements the informed reader will also look at the index to exhibits near the end of the 10 k professor arnold said especially items under exhibit 10 which are material contracts employment agreements with executives are listed there as well as important contracts like leases investors examining the 10 k should look not just for bad news like a warning that cash flow is so shriveled that management can no longer assure that the enterprise will continue management is supposed to disclose every material known event trend or uncertainty that may cause the future to differ from the present professor arnold said he said those disclosures must deal with both the negative and the positive because without positive disclosures investors might sell prematurely and miss a run up in a stock s price whether enron technically violated the full disclosure requirement in item 7 of its latest 10 k filed last april 2 is a matter of debate enron s hidden liabilities in hundreds of partnerships that eventually led to the company s collapse were never mentioned although a tortuous path through the footnote section acknowledges the existence of some of these partnerships critics say enron buried that information so completely and omitted even more that it was the same as a failure to disclose the truth henry t c hu a professor of banking and finance law at the university of texas said enron was supposed to show a real big picture view of what could go wrong at a company professor hu said he thought the likelihood is quite high that regulators would now look into whether enron had disclosed the risks adequately
#WORDS = 631 - 1346
Special words women medvec data kellogg engine morton thiokol participants contrarian inconclusive
headhunters say it has been hard ever since enron to find people willing to serve as corporate directors no one wants to be shamed or sued for sleepwalking through the next meltdown but hopeful directors to be all of them eager to hone their corporate watchdog skills recently packed an auditorium here at the kellogg school of management at northwestern university for a training program the course the first by kellogg for women only was overbooked attracting executives from companies like accenture household international sears microsoft and merck it s fascinating when i hear people say they can t fill board positions said victoria h medvec a kellogg management professor and founder of the school s center for executive women which offers the director course i think there is a tremendous untapped pool many of the participants said they had enrolled because they wanted to learn how to be nominated as directors others said they already had some feelers and needed to know how to separate the good opportunities from the disasters and dead ends it s hard to get onto a board ms medvec said noting that these novices were not yet realistic candidates for fortune 500 boards but it s really hard to get off last summer when kellogg officials began planning a kind of boot camp for prospective directors they did not foresee that a number of scandals might soon cast a spotlight on the boardroom concerned about the glacial pace at which women have entered corporate america s boardrooms they wanted to offer seasoned businesswomen the final preparation and contacts to become board members ms medvec said only 11 percent of fortune 1000 directors are women according to catalyst a group that works to advance women in business in the months since the planning sessions sherron watkins blew the whistle at enron coleen rowley disclosed botched counterterrorism work at the f b i cynthia cooper made worldcom confess to 3 8 billion worth of accounting fraud and a former european commission chief accountant marta andreasen challenged the european union s accounting system no one at kellogg s inaugural women directors program was claiming that those examples suggested that women would make superior corporate watchdogs but in the air was very much the sense that women may have something new and useful to offer in terms of corporate governance now that they seem to stand a better chance of moving onto boards it s hard to say this without having it sound like stereotyping said carol a wacker a california management consultant who attended the course but there is a strong moral overtone in the questions the women are asking do women seek a higher plane the participants wanted to know for instance where they were likeliest to find evidence of accounting fraud in corporate financial statements they debated the right time to fire a failing chief executive they asked how directors are compensated i m always embarrassed to talk about that said donald p jacobs a kellogg finance professor whose presentation a corporate crisis simulation was interrupted by that question chief executives usually set directors pay he said using comparative data from other corporations the problem is everybody wants to be above average he added it starts spiraling highly paid directors may then be too appreciative of the chief executive s largess to challenge him other questions had to do with whether women are more risk averse than men there was no consensus and whether they are effective self promoters on that there was agreement women tend to sabotage themselves with excessive modesty some participants wondered whether as new directors they could use naivete to camouflage tough questions perhaps they were told but not for very long the women were also warned that the job had become more demanding boards used to meet typically four times a year they were told but now a six meeting schedule is more common and in the future there will probably be 10 prospective directors without accounting backgrounds were advised to hire tutors and no longer is it enough to read the board book of data that directors typically receive a week before each meeting...
#WORDS = 884 - 1837
Special words proud chemical slowdown dublon lee speaks gobbled solow 6th capstone
when william b harrison jr speaks of last year s 31 billion merger of j p morgan and the chase manhattan corporation he speaks proudly of a deal that he considers to be a capstone to his 34 year career of helping build a giant of the banking business this is the first merger i ve been part of said mr harrison the chief executive of the combined bank where i feel our core business is complete the chase j p morgan combination helped advance the bank into the investment banking elite just as mr harrison intended but with wall street and the economy in far different places today than they were when the deal was put together the many mergers stock sales and other money making opportunities that were supposed to justify the high priced acquisition have largely dried up for now consequently deal makers and analysts who follow the bank are already speculating that mr harrison 58 may ultimately be compelled to do yet another large deal this time to diversify his business away from its heavy emphasis on wall street j p morgan chase has won some prominent assignments like handling the revampings of troubled giants like lucent and more recently enron the beleaguered energy trading company but while j p morgan chase is proud of serving alongside citigroup as both lead lender and adviser to enron on its acquisition by dynegy the dual role it has worked to achieve sometimes proves complicated for the bank with enron s shares in free fall as more information comes out about its hidden debts j p morgan chase has been scrambling to maintain the support of other banks while simultaneously keeping the merger with dynegy on track thanks largely to the slump on wall street j p morgan chase s profits fell by two thirds in the third quarter to 449 million from 1 4 billion in the period a year ago its stock has dropped 15 percent this year more than other banks shares the bank s stock is ahead of investment banks like goldman sachs with which j p morgan chase increasingly competes the jury is still out in many respects on this merger said judah kraushaar an analyst at merrill lynch nevertheless he likes j p morgan chase s stock he said because expectations are very low all j p morgan chase s competitors are suffering from the slowdown on wall street but some like citigroup are better diversified and have greater involvement in old fashioned consumer banking which is proving to be a strong moneymaker this year nearly a third of j p morgan chase s revenues are consumer oriented by contrast its chief new york rival citigroup gets half its revenues from consumer businesses the timing of the merger was bad said steven wharton a banking analyst at loomis sayles company which owns about a million j p morgan chase shares there s no disputing that actually mr harrison disputes it i can t tell you how happy i am about having done this merger he said in a recent interview while there are pluses and minuses to operating in a weak economic environment we have a much stronger platform to manage with during this difficult time in mr harrison s favor is his battle tested team of top executives who have worked together for a decade or more few executives remain in the top spots from the old j p morgan instead most major posts are filled by managers who have worked with mr harrison since his days at chemical bank where he spent most of his career mr harrison s team successfully gobbled up manufacturers hanover bank in 1991 then followed that with chemical s merger with chase manhattan in 1996 before incorporating morgan into the fold last year the group of chemical veterans includes marc j shapiro who oversees finance and risk management at j p morgan chase donald h layton one of two leaders of investment banking and james b lee jr the bank s senior deal maker the team also includes dina dublon the bank s chief financial officer two other senior executives have also lived through big deals geoffrey t boisi the other investment banking leader was the one time investment banking chief at goldman sachs david a coulter in charge of chase s retail bank had been chief executive of bank of america before it was bought...
#WORDS = 647 - 1430
Special words recording artists album awards henley record u2 coalition grammy grammys
wednesday will be the biggest night of the year for the mainstream music world the 44th annual grammy awards which will be presented at the staples center here and broadcast on cbs the consensus is that the nominations for most of the main awards are likely to prevent a repeat of embarrassing episodes in which winners made the grammys look out of touch no doubt there will be gaffes and embarrassments this year in addition to the usual panache and revealing outfits but here are some other things to watch for a manager joked recently that he wanted to represent u2 so that he could take them to the next level the joke is that after a hugely successful album and tour in which u2 restaked its claim as one of the most vital rock acts in the world the band could not possibly get any bigger but at the grammy ceremony it seems likely that it will the band is nominated for eight awards more than any other act including three of the top ones best album best record given to a single and best song presented to songwriters at the least u2 seems likely to walk away with the top honor the album prize for all that you can t leave behind this is good news for grammy viewers because bono is not one to let the opportunity for a speech go by without making it memorable what may prevent u2 from a near sweep of awards akin to santana s in 2000 is alicia keys the singer and pianist whose first hit fallin is also a favorite for the record and the song prizes ms keys was nominated for six awards and in each of those categories she is competing with the talented neo soul newcomer india arie who was nominated for seven awards her cd acoustic soul was nominated for best album while ms keys s album songs in a minor was not this may show a slight quirk in a relatively recent grammy innovation a screening committee of about 25 members who oversee the final nominations in the top four categories the committee was created in 1995 by the organizers of the grammys the national academy of recording arts and sciences after tony bennett walked away with the best album award for his mtv unplugged true to its mission the committee has selected a high quality list of recordings to compete for best album bob dylan s love and theft u2 s closest competition here outkast s stankonia the o brother where art thou soundtrack acoustic soul and the u2 cd but it seems that the committee considered acoustic soul and songs in a minor too similar to compete for top album and picked a favorite mariah carey s woes didn t begin this year at the grammys in 1996 she was nominated for six awards tied with alanis morissette for the most nominations it was hard for her to conceal her disappointment when she won nothing this year part of the suspense will be seeing whether india arie and train up for four awards are shut out by competition with better brand recognition the staples center and the los angeles police department have made security at the grammys a top priority officials said that they would inspect all vehicles entering the area search attendees and make sure that they had legitimate tickets presumably these precautions are being taken to ensure that the performance artist soy bomb doesn t attempt to jump onstage with mr dylan again colliding forces on monday night at a star packed musicares person of the year dinner honoring billy joel a hectic week began for musicians and the phalanx of executives circling them this is because more so than in past grammy weeks many things are colliding at once the awards show and the glut of celebrity parties that traditionally accompany it four high profile benefit concerts in california tuesday night that marked the beginning of an artists assault on the hand that they don t think feeds them enough i e the record labels and a new height in pessimism about the music business among those performing at the tribute were diana krall bon jovi melissa etheridge natalie cole and don henley who happens to be an organizer of tuesday night s benefits for the recording artists coalition the highlights of the musicares event held by the national academy of recording arts and sciences were stevie wonder who...
#WORDS = 121 - 223
Special words humann 497 suntrust 343 347 comparable phillip 108 111 83
suntrust banks inc said today that profit fell 1 percent in the second quarter after it increased its provision for bad loans net income totaled 343 7 million or 1 20 a share down from 347 1 million or 1 19 in the comparable period last year higher investment banking fees and a rise in deposits helped offset the 111 million the bank which is based in atlanta reserved for loan losses almost triple the amount in the comparable quarter last year the chief executive l phillip humann said a sluggish economy would prompt more loan losses suntrust wrote off 16 3 million to units of the bankrupt enron corporation in the second quarter and is owed 76 million by the adelphia communications corporation bank officials said bad loans have by no means gone away as an issue mr humann said on a call with investors and analysts the bank may face further modest deterioration in credit quality the rest of the year at the end of june suntrust raised by 15 percent to 497 2 million the amount of loans it expected might not be repaid the bank the ninth largest in the united states with 108 billion of assets also wrote off 83 million in commercial loans more than three times the amount in the quarter last year credit bloomberg news
#WORDS = 384 - 903
Special words olson yiddish note sanders yo blodgett skeptic mitchell adolescence schnuckel
of all the enron mementoes john olson might have the best one mr olson an analyst who has been a longtime skeptic of the energy company s once stratospheric stock price has a handwritten note that the enron chairman kenneth l lay sent last june to mr olson s boss donald sanders don john olson has been wrong about enron for over 10 years and is still wrong mr lay wrote but he is consistant ken consistently right actually mr olson who follows the energy industry for a small investment firm here has finally been proved correct where just about every other wall street analyst who followed enron was wrong but he can take only a grim kind of satisfaction in his prescience i would like to be able to gloat he said but this thing is just too damaging too unhappy to do anything like that mr olson who calls himself an old fashioned analyst who does not own individual stocks himself is now a houston celebrity a recent talk he gave at the petroleum club on the fall of enron drew a standing room only crowd he s a very sharp analyst said george p mitchell founder of the mitchell energy development corporation in houston when you have 16 out of 17 analysts promoting the stock he said that s pretty tough opposition but he stuck to his guns and he did it early mr olson s moment in the sun comes at the end of a lonely time wall street he said was dazzled by enron s high technology gloss and did not scrutinize the business that he said has been the sad trend of the analyst community during the years of the dot com bubble when companies with no profits and few prospects of earning them could get glowing reviews from analysts like henry blodgett of merrill lynch and mary meeker of morgan stanley henry blodgett might be a nice young man but he said trailing off into silence on wall street he said the worst thing you can be is a schnuckel which he said was the yiddish word for dupe we were schnuckled on enron he said it was gloriously overvalued his rough command of yiddish the likely word he was referring to was schnook came from his adolescence in larchmont n y where he said the fathers of jewish girls he dated used choice yiddish terms to insult him yiddish is a marvelously slanderous language he said a sardonic man six feet tall thin and weathered he looks like a giacometti statue in pinstripes he describes himself as a basset hound with a 25 watt personality after receiving an m b a from the wharton school of finance at the university of pennsylvania he worked as an analyst covering the oil gas and electric power industries for firms including merrill lynch drexel burhnam lambert and first boston he is currently director of research for a boutique firm here the sanders morris harris group his small corner office on the 31st floor of one of houston s many downtown office towers has a splendid view of enron field the city s new baseball stadium the wood framed note from mr lay hangs near a wire sculpture of an oil derrick and a silver yo yo the note was scrawled in the margins of a story from u s news world report in which mr olson was quoted as saying they re not very forthcoming about how they make their money he went on to say i don t know an analyst worth his salt who can seriously analyze enron a messenger delivered the note from mr lay the next day by hand when mr sanders his boss showed him the note mr olson recalls shrugging you know that i m old and i m worthless he said but at least i can spell consistent in houston opposing enron was a little like being against the city itself said stephen l klineberg a professor of sociology at rice university you could make a case that it was especially hard in houston to be a skeptic on enron he said because ken lay and enron were very much at the center of houston s sense of positioning itself for success in the post oil age of trading and high technology the cost of such pessimism could be high mr olson said they are a very combative culture over there he said they always played to win those who did not join the chorus of praise for enron he said could be punished there was a strong mandate unwritten unspoken at enron that if you the investment...
#WORDS = 679 - 1350
Special words ubs belden whalley lavorato upper dominoes rauh shere warburg intellectual
eight months ago when ubs warburg acquired enron s trading unit the swiss investment banking company thought it got a steal ubs paid nothing but the promise of a percentage of future profits for enron s most prized asset a fast growing energy trading operation that in 2000 and 2001 booked about 4 billion in operating profits but now ubs warburg s drive to become a major force in the energy trading business is facing major hurdles not just enron s troublesome legacy but a drastic contraction in energy trading itself on thursday timothy n belden a top enron trader who had followed the operation to ubs pleaded guilty in federal court in san francisco to helping manipulate power markets during the california energy crisis mr belden who recently resigned from ubs agreed to cooperate with prosecutors in their continuing investigation which could ensnare other former enron traders or executives now at ubs just a day earlier dynegy like enron one of the country s premier energy traders a year ago announced that it was getting out of the business joining a growing number of energy companies that have found profits harder to come by in markets engulfed by post enron doubts ubs officials declined to comment on mr belden s plea or its implications for ubs the bank has long insisted that it accepted no responsibility for enron s actions when it acquired the unit last february but enron casts a long shadow they bought intellectual capital and if your intellectual capital winds up behind bars it s not going to help them said craig shere an energy analyst at standard poor s joseph dunn a california state senator who heads a legislative inquiry into market manipulation said he expected that prosecutors would pursue higher level executives and uncover what he considered collusion among energy trading companies enron s upper management was very knowledgable about tim belden s activities senator dunn said in a telephone interview today belden is simply the first of many dominoes the dominoes are going to go up to executives and to former enron traders now at ubs fearing such an outcome ubs officials have for months been trying to distance the firm from enron after taking over an operation with 630 employees who continue to work in enron s glass skyscraper in downtown houston ubs imposed new controls on traders accustomed to employing unusually risky strategies ubs replaced the trading group s general counsel and effectively demoted lawrence g whalley who had been enron s president and left to head the trading group at ubs regina dolan formerly chief financial officer at painewebber was named chair of the energy trading business in august the bank laid off 150 employees or about 25 percent of the unit s staff because of lower trading volumes industry experts say that ubs has not garnered anything like the market share that enron had and ubs officials concede that they have had to reorient the business to emphasize physical trades of natural gas with small producers rather than bold hedging deals with other big energy traders there s no question since we took over the market has gotten smaller said david walker a spokesman for ubs warburg but we continue to see opportunity in energy trading the business is refocused the bank had hoped for so much more early this year ubs executives boasted about a sweet deal that got them a talented group of traders who would help put ubs warburg on the energy trading map but enron s top trader john arnold who booked 750 million in trading profits in 2001 never joined ubs instead quitting to start his own firm after collecting an 8 million bonus as enron collapsed according to lawyers involved in the matter many former enron traders who did join ubs are being called to testify in continuing federal investigations of the energy markets among those who have been questioned by both the federal energy regulatory commission and the commodity futures trading commission are mr whalley and john j lavorato who was one of mr belden s supervisors at enron lawyers involved in the matter said that mr belden and mr lavorato were in close contact during 2001 adding that...
#WORDS = 639 - 1176
Special words wind turbines turbine speed blades designs farms fossil fuels burning
the windmill is a centuries old technology originally developed to pump water and grind grain but it could play an important role in solving two serious problems facing the united states generating an adequate supply of electricity and reducing the emission of greenhouse gases wind turbines have been used for generating electricity for more than a century beginning with experiments by a danish meteorologist poul la cour in the 1890 s and his founding of the society of wind electricians in 1905 despite refinements in the 20th century development did not begin in earnest until the oil crisis in the 1970 s made the electricity supply expensive and less reliable the 1970 s and 1980 s saw a proliferation of turbine designs ranging from two and three propeller horizontal generator designs to a vertical model that resembled an eggbeater but this country s nascent wind generation industry got a bad rap in the 1980 s when investments in wind generators failed because of cheap electricity from fossil and nuclear fuels and the inefficient design of some turbines wind turbines have now become much more efficient thanks in large part to the danish windmill industry now dozens of manufacturers are cranking out turbine models from small designs each aimed at providing power for a single house to huge machines with 100 foot blades that can supply between two and three million kilowatt hours in a year enough to power at least 500 households california which has the most developed wind power industry of any state has more than 15 000 turbines creating enough energy for about a million people and in the late 1990 s enron wind a wind turbine developer based in california installed the three largest wind generation plants in the world in the american midwest two plants each producing more than a hundred megawatts in lake benton minn and a 193 megawatt plant in storm lake iowa the impetus for generating clean power is being spurred by efforts to reduce greenhouse gases currently two thirds of the electricity in the united states is generated by burning fossil fuels like coal gas and oil such combustion pumped 2 245 million metric tons of carbon dioxide into the atmosphere in 1999 according to the department of energy and the environmental protection agency that was an increase of 1 35 percent over the previous year the more power produced by wind the less need be produced by burning fossil fuels but wind turbines remain a relatively untapped resource wind currently contributes three billion kilowatt hours annually less than 1 percent of the national supply wind power has a few benefits over more common ways to generate electricity wind farms with dozens or even hundreds of turbines can be built cheaply and quickly and they can be easily expanded their operational costs are not subject to fuel prices and the cost per kilowatt hour is comparable to the cost for plants burning fossil fuels a disadvantage of wind power is its unreliability although wind farms are situated to take advantage of strong prevailing winds variations in wind speed cause unpredictable fluctuations in the capacity of a wind turbine even the most efficient design fails to capture 40 percent of the energy in the wind but since it s free energy failing to tap it all is not such a big problem despite the advantages of wind generation it has a large number of earnest opponents some people just do not want to have wind turbines nearby the turbines are huge structures that are visible from great distances because they need unobstructed access to air currents so many zoning boards and prospective residents say they are eyesores that contribute to visual blight the large structures also require deep concrete foundations and that heavy construction has its own impact on rural settings such excavation leads to local air pollution and the risk of erosion at the sites and their access roads and wind farms gobble up territory taking up considerably more land than other electrical generators to generate a comparable amount of electricity many older models drew opposition because they were noisy but newer designs are quieter the wind generation...
#WORDS = 571 - 996
Special words radiation stamps undetected airfield channel tanker cornel disturbances orbiting vanquished
international a3 14 pakistan says india attack would alter afghan patrols pakistan has not reduced the number of troops hunting qaeda leaders on the border with afghanistan despite india s military buildup pakistani officers said but if india attacked pakistan most of the 61 600 troops now devoted to sealing the afghan border searching nearby mountains and protecting american forces in pakistan would be shifted to national defense they said a12 secretary of state colin l powell said he would visit both nations next week to try to contain tensions a12 6 die in mideast attack two palestinian gunmen cut a fence surrounding the gaza strip and killed four israeli soldiers before being shot dead themselves the first such killings since yasir arafat called for a halt to attacks on dec 16 a14 colombia talks in disarray president andres pastrana said peace talks with the largest rebel group had stalled and he ordered the rebels to leave a demilitarized zone that had been ceded to them the rebels denied breaking off talks a5 world briefing a8 nation challenged a14 15 u s sees iran challenge to new kabul government iran is seeking to exert political and military influence in border regions in western afghanistan in ways that challenge the authority of the interim government in kabul and threaten washington s long term goals in the country pentagon and intelligence officials said a1 7 marines dead in air crash an american military tanker plane carrying seven marines crashed into a mountainside and exploded during its approach to an airfield in southwestern pakistan a1 taliban surrender and go free seven high ranking officials of the vanquished taliban government surrendered to a provincial leader and were allowed to go free on monday a spokesman for afghanistan s new government said a14 misgivings about olympics mitt romney president of the organizing committee for the winter olympics in utah next month said security costs might give america reason to decide against being an olympics host in the future a17 debate on televising trial a federal judge heard arguments on whether the trial of zacarias moussaoui the first person charged with complicity in the sept 11 attacks should be televised a17 u s seizes groups assets the bush administration froze assets of two groups that profess humanitarian aims but that officials said had funneled charitable donations to al qaeda a17 national a18 25 u s may ease limits on immigrant food stamps the bush administration proposed restoring food stamps to many legal immigrants whose eligibility for benefits was severely restricted by the 1996 welfare law a1 g o p chief to drop lobbying marc racicot the newly selected head of the republican party said he would halt his lobbying when he assumed the post next week the former montana governor has been stung by an unexpected firestorm over his work as a lobbyist a24 death sentence struck down the supreme court 5 to 4 overturned a south carolina death sentence because the judge had refused the defendant s request to tell jurors that there was no chance the man they had convicted of murder would ever be set free if they sentenced him to life in prison a25 clinton aide in governor s race robert b reich a former secretary of labor said he would seek the democratic nomination for governor of massachusetts a23 radiation goes undetected fedex unwittingly carried a package from paris to new orleans last week that was emitting so much radiation that the recipient a company that packages radiation sources for industrial testing has been unable to get near enough to measure it a22 new york region b1 8 pataki to limit spending and retain tax cuts governor pataki a republican preparing to run for a third term promised in his annual address to hold the line on spending without postponing tax cuts and he urged lawmakers to rise above the partisanship that paralyzed budget talks and negotiations on major bills for the last year a1 settlement in boy s death the giuliani administration was said to have reached a 400 000 settlement on dec 27 with the family of gavin cato the 7 year old whose traffic death in 1991 touched off the...
#WORDS = 634 - 1158
Special words sinkers easter holiest solemnity appealing nurse dredging fishing lizards 82
international a2 9 sharon speaks of war ramallah made off limits calling yasir arafat the enemy of the free world prime minister ariel sharon declared israel to be in a war mr sharon has made similarly bellicose statements about mr arafat in the past a1 a suicide bomber from the islamic group hamas killed himself 14 others and wounded more than 40 in an attack on a restaurant frequented by arabs and jews in the coastal city hafia two hours later another suicide bomber exploded in a station for paramedics in a settlement south of bethlehem killing himself and wounding at least four medics one of them seriously a1 the israeli government declared ramallah a closed military zone after 40 international protesters including journalists entered yasir arafat s besieged compound the government said the reporters were there illegally and that any who remained could lose their accreditation and have their offices closed a8 pope calls for mideast peace pope john paul ii presided over easter services appealing to christian communities to work to end the spiral of attacks between israelis and palestinians a4 little work for japanese youth the japanese recession s most invisible victims are young people entering a radically changed job market while headlines lament the layoffs of 50 year old workers who receive generous severance packages the press pays little attention to hiring restrictions that are freezing out a generation a3 nation challenged a12 13 bomb attack puts chill on churchgoers in pakistan armed police officers guarded the gates at st thomas church of pakistan in islamabad as a sermon spoke of terror and the fear of death two sundays ago a man with a bomb walked into a service at the city s other protestant church and killed five worshipers including an employee of the american embassy and her daughter a12 national a14 17 prescription drug issue moves to center stage evidence that prescription drugs are taking center stage on the campaign trail is plentiful including action by more than 30 state legislatures to pass bills to curb drug costs a1 trash train slows tullytown pa is working to find a replacement for the 2 million to 4 million it has received annually for letting new york city and long island dump trash in its landfill a14 a debate over dredging the port of portland is promoting a plan to dredge millions of tons of sand from the bottom of the columbia river to allow ever bigger ships to navigate the river but fishermen tribes and environmentalists are opposed saying the activity could wreak ecological havoc in crab and fishing grounds a14 appealing to the faithful cardinal bernard law called on the faithful at the cathedral of the holy cross in boston to maintain their belief despite the scandal over sexual abuse of children by priests that has rocked the roman catholic church this year he did not apologize to victims of abuse by priests instead he urged catholics to focus their gaze on the unseen mystery of easter the holiest day of the year for christians a15 a development or a refuge the endangered desert lizard is at the heart of a battle between its protectors and a developer with visions of a 9 000 acre desert town between the southeast boundary of joshua tree national park and the northern edge of the coachella valley preserve in california the last refuge for the lizards and dozens of other species a15 h i v fears hundreds of patients of a hospital in jourdanton tex have been tested for the h i v virus after an h i v positive nurse admitted stealing doses of the painkilling drug demerol and replacing it with a saline solution the hospital fears the nurse may have used infected needles while making the switch a16 new york region b1 8 family of shooting victim disputes the authorities a man who was shot to death on saturday night by a plainclothes police officer after breaking into a van has been identified as a lower east side resident with more than 30 arrests on larceny and drug charges the authorities said b3 ban on new york lead sinkers the legislature is on the brink of passing a bill that will ban the sale of lead sinkers used to weight fishing lines the...
#WORDS = 366 - 615
Special words 089 730 gates 8885 ackermann reconsiders stunts josef plastics shelved
tyco reconsiders a sale of its plastics operation tyco international plans to announce tomorrow that it may suspend the auction of its plastics unit executives close to the company said its asking price was apparently too high in addition tyco has so far failed to find a buyer for all or part of cit its financial division and may have to instead spin that unit off in an initial public offering as a way to generate cash the executives said trial opens in hewlett packard case on the first day of trial lawyers representing walter b hewlett the dissident director of hewlett packard who has filed suit to challenge its planned merger with compaq computer contended that management had repeatedly misled shareholders about projected gains from compaq even as senior executives inside the two companies had become more pessimistic inquiry into stock analysts expands the investigation into the conduct of stock analysts spread as federal and state regulators joined the new york attorney general eliot l spitzer in pressing to eliminate conflicts of interest on wall street new rules to end money laundering the treasury department imposed new regulations on a wide variety of financial institutions and other businesses in an effort to cut off the flow of money to terrorist groups f t c takes on big drug makers the chairman of the federal trade commission told congress that brand name drug companies were using illegal tactics to prolong their monopolies on prescription medicines depriving consumers of the benefits of less expensive generic drugs nasdaq falls in technology slump technology stocks slumped sending the nasdaq composite index to its fifth consecutive losing session the nasdaq ended down 28 39 points or 1 61 percent at 1 730 29 the dow jones industrial average slipped 47 19 points or 0 47 percent to 10 089 24 and the broader standard poor s 500 stock index declined 6 87 points or 0 62 percent to 1 100 96 bankers have merging on the mind in the last few years executives at rival banks have had conversations about possible mergers in pursuit of the next big deal that will bring the economies of scale and the influence necessary to compete in the global financial services market josef ackermann left who becomes deutsche bank s chief next month rejected an offer from citigroup in february gates objects to proposed remedy in a series of heated exchanges microsoft s chairman bill gates insisted in court that the company would have to remove its windows operating system from the market if the court adopted one proposal from the states seeking tougher antitrust sanctions against it legislators in mexico city prepared to attack a new agreement by microsoft and the mexican government enron s collapse stunts houston a nearly complete office tower in houston across the street from enron s headquarters is a potent reminder that the pain caused by the enron implosion can ripple far beyond its initial victims other building plans have been slowed or shelved and downtown businesses are finding themselves with fewer customers commercial real estate photo yesterday dow industrials 10 089 24 down 47 19 nasdaq composite 1 730 29 down 28 39 10 yr treasury yield 5 17 down 0 01 the euro 0 8885 down 0 0012 the dollar 130 16 yen up 0 20 today shows figures for durable goods orders and new home sales from september to february durable goods orders march figures due at 8 30 a m eastern time expected 0 5 new home sales march figures due at 10 a m eastern time expected 0 9 graph tracks the daily closing price of hewlett packard shares for the week
#WORDS = 107 - 217
Special words jacobs postponement postponed flooded develop favored inspired memorial regulations sought
facing enormous opposition from the financial services industry and some republican lawmakers the chairman of the senate banking committee postponed a meeting scheduled for tuesday at which lawmakers would have considered an overhaul of accounting industry regulations inspired by the collapse of enron house republicans have already passed an accounting bill that is favored by the accounting industry and business groups but senator paul s sarbanes democrat of maryland and the committee chairman has proposed a competing bill that would go further in tightening oversight of the industry his bill is supported by consumer groups and institutional investors as well as some leading figures in finance republicans led by senator phil gramm of texas had sought to delay consideration of mr sarbanes bill and they have flooded the committee with proposed amendments jesse jacobs a spokesman for the committee said the legislation would not be considered until after lawmakers returned in june from the memorial day break mr sarbanes agreed to mr gramm s request for a postponement mr jacobs said so the committee would have time to sort through the amendments that was a lot to digest and work through and he agreed to lay it over so we can continue to work to develop a consensus mr jacobs said credit by the new york times
#WORDS = 557 - 1079
Special words sowerby eidelman resurgence waiting longing camped deadbeat torrid wheaties verisign
the united states economy is showing signs of life so why is the stock market still acting the part of the deadbeat stock investors longing to move into positive territory for the year had hoped that signs of an improving economy would end their days of waiting but share prices sank yesterday even as the government reported that gross domestic product grew at a torrid 5 8 percent pace during the first quarter of this year the dow jones industrial average fell 1 2 percent on the day ending the week off 3 4 percent its worst weekly performance since the stock market reopened after the terrorist attacks in september all the major stock indexes now show losses for the year the economic growth in the first quarter was more than had been expected and well above the 1 7 percent rate of the fourth quarter of 2001 but investors shrugged off the otherwise good news indicating their concerns about the report s hints of consumer skittishness and their continuing unease over corporate profits and investigations into wall street practices investors may have played down the economic resurgence partly because the report is at odds with what corporations have been saying in recent weeks the good economic news came in as we re nearing the end of an earnings season that doesn t quite back it up said liz miller portfolio manager at trevor stewart burton jacobsen in new york the numbers for the most part met expectations but what i think is so much more important were the corporate comments that this is a slow recovery she said a trouble spot market strategists said is that the government numbers indicated slower growth in consumer spending although such expenditures grew at an annual rate of 3 5 percent in the first quarter that was down from 6 1 percent in the final months of 2001 because consumers have kept the economy afloat the last two years any slowdown worries investors consumer optimism as measured by a university of michigan survey released yesterday fell to a two month low leading to some forecasts of more weakness in consumer spending stock investors meanwhile continue to harbor doubts about the financial soundness of american companies and fret about the risk of yet another corporate accounting fiasco the enron overhang is still plaguing the market said david sowerby portfolio manager at loomis sayles company people are waiting for the next accounting fraud and that is prompting additional weakness in the market on a temporary basis there is also a lingering lack of confidence that earnings will improve meaningfully david eidelman a portfolio manager at eidelman finger harris in st louis said he had doubts about a rebound in corporate earnings airline earnings came in way worse than expected he said that shook me up and made me wonder what other industries aren t recovering the way we thought they would the dow jones industrial average fell 124 34 points or 1 2 percent to close at 9 910 72 and the nasdaq composite index tumbled almost 50 points or 2 9 percent to close at 1 663 89 the standard poor s 500 stock index the broadest market gauge fell 15 16 points or 1 4 percent to 1 076 32 the s p and nasdaq indexes are now at their lowest points since last october the dow industrials by contrast are up sharply since then shares of technology companies financial services concerns and media companies slumped yesterday intel and microsoft lost 3 3 percent and 4 2 percent respectively and citigroup lost 2 5 percent disney dropped 3 6 percent some of the biggest losers were companies warning of lower profits general mills maker of wheaties cut profit estimates for this year and next its shares slumped 5 2 percent verisign which collects name registration fees from owners of internet sites lost 46 percent of its value yesterday when management reduced its forecasts for second quarter earnings the stock which had traded above 26 just 10 days earlier closed at 9 89 erasing almost 2 billion in value during the session dynegy an energy trading company that once planned to acquire enron shed 22 4 percent of its value yesterday after the company said that it would record a loss in the first quarter and that it had made an error...
#WORDS = 351 - 618
Special words edison 688 ullico 946 schools 9003 phoenix discreetly ual creighton
andersen trial in phoenix opens with views of fraud a civil trial against arthur andersen began in phoenix with a lawyer for the plaintiffs a baptist foundation whose books the firm audited maintaining that andersen had ignored warnings that the charity was a ponzi scheme years before it collapsed andersen s lead lawyer told the jury that the firm was a victim of fraud and that by dec 5 1996 every member of the board of the foundation knew of the fraud as did lawyers and accountants who worked for it a house committee has refused to turn over notes and records of interviews with david b duncan the andersen partner who orchestrated the destruction of enron documents study points to disparity in lending a far greater share of black and hispanic homeowners with above average incomes still have mortgages with higher interest rates than whites with comparable incomes according to a study to be released today shares of edison schools halt slide shares of edison schools the nation s largest for profit operator of public schools halted a weeklong slide that had eroded more than half the stock s value its shares began dropping after april 17 when a state panel overseeing the philadelphia school system voted to give the company control of 20 failing schools 25 fewer than expected ual begins search for top executive ual is starting a search for a chief executive jack creighton who took the post temporarily last october after james e goodwin was forced out is stepping down hynix board leaves micron at altar the board of hynix semiconductor voted unanimously to reject a takeover of most of its assets by micron technology saying the price was too low ullico finds outsider to lead inquiry the board of ullico a union owned insurance company has named james r thompson the former illinois governor to investigate the private sale of company stock that resulted in big profits for its directors dow nasdaq and s p post gains the dow jones industrials closed up 126 35 points or 1 3 percent to 9 946 22 the nasdaq gained 31 30 points or 1 9 percent to 1 688 23 while the standard poor s 500 was up 11 47 points or 1 1 percent to 1 076 92 consumer confidence off slightly consumer confidence fell during april the conference board reported its gauge of sentiment dropped to 108 8 from 110 7 in march the drop was less than expected i b m s chairman signs book deal louis v gerstner jr the chairman and former chief executive of i b m has discreetly negotiated a deal to publish a book about his tenure unlike most executive authors he has already quietly written much of it by himself he famously took i b m from a hidebound behemoth on the brink of collapse to a model of corporate revival displaced workers may get aid republicans and democrats in the senate reached a tentative agreement on providing help to workers who lose their jobs to international competition mixed use project in dallas stalls a proposed 20 acre mixed use development in downtown dallas has been stalled in a fight over the amount of city financing it needs commercial real estate photo yesterday dow industrials 9 946 22 up 126 35 nasdaq composite 1 688 23 up 31 30 10 yr treasury yield 5 09 down 0 02 the euro 0 9003 down 0 0032 the dollar 128 57 yen up 0 55 today shows construction spending from september 2001 february 2002 march figures due at 10 00 a m eastern time expected 0 2 graph tracks share prices of edison schools for the week
#WORDS = 425 - 954
Special words cheerleader aulana melvin supplant augustine bowsher misconstrued consultation laird recourse
a five member board that oversees ethics and disciplinary issues for the accounting profession announced today that it had resigned as a group after the chairman of the securities and exchange commission proposed creating another body that could render the board irrelevant the future of the panel the public oversight board became uncertain last week when after the collapse of enron the nation s top securities regulator harvey l pitt the s e c chairman suggested overhauling the accounting ethics and disciplinary system with a new organization dominated by experts from outside the accounting profession details of the plan remain sketchy but some experts said that it would appear to supplant the public oversight board which is already composed of outside experts the board is led by charles a bowsher a former comptroller general of the united states who won praise for his independence as the head of the general accounting office during the savings and loan collapse in an interview this afternoon mr bowsher called mr pitt s proposals a sham intended to give the industry more power to discipline itself rather than submit to outside scrutiny he said the effect would be to put the oversight board more under the control of the industry s main trade association the american institute of certified public accountants that association and all of the big five accounting firms are former clients of mr pitt who left his law practice last year for the s e c the s e c is trying to call a board of mixed composition independent when it is just the opposite mr bowsher said we don t think the new plan is a good one every once in a while when these things happen you have to be willing to resign it s like what an auditor does you talk to your client to get the numbers right but if they are not willing to make the changes then you have to be willing to step aside late this afternoon mr pitt urged the board to reconsider its decision saying it was not in the public interest and he suggested that his comments had been misconstrued nothing i said on thursday or since was in any way intended to suggest that the p o b had no role to play mr pitt wrote in a letter to the members of the board indeed my proposals were intended to strengthen the body that will be our new p o b ensure its independence from the a i c p a and expand its mandate the issues i think are too important for the p o b simply to walk away he added the public oversight board created in 1977 oversees quality control and peer reviews of accounting firms it also oversees a board that sets the auditing industry standards the oversight board selects its own members and is largely financed by the industry former board members include paul h o neill who resigned to become treasury secretary and melvin r laird the former defense secretary the members who resigned along with mr bowsher are donald j kirk a former head of the financial accounting standards board a rule setting organization of the accounting profession norman r augustine former chairman and chief executive of lockheed martin john h biggs the chairman and chief executive of tiaa cref the investment group created to handle teachers retirement funds and aulana l peters a former s e c commissioner critics have said that the oversight board and the american institute of certified public accountants have been too lax in their supervision of unethical accountants the oversight board for instance is responsible for supervising industry peer reviews that have yielded questionable findings late last year for example deloitte touche gave arthur andersen the enron auditor a healthy review for its auditing process i ve been disappointed in the p o b s inability to put teeth in its programs said arthur levitt the former chairman of the securities and exchange commission who tried with only limited success to have tougher restrictions imposed on the accounting industry i attribute that to their funding and staffing by the industry s cheerleader the american institute of certified public accountants the oversight board has been well meaning but largely ineffective mr bowsher who has led the board for two...
#WORDS = 494 - 1028
Special words blunders stubby christiansen undefeated clapp remlinger slams northwestern reese accounted
sammy sosa hit two home runs including a grand slam as the chicago cubs snapped a 13 game losing streak at st louis with a 9 4 victory over the cardinals last night julian tavarez 5 4 allowed two runs eight hits walked three and struck out five in seven innings for the cubs who had not won at busch stadium since oct 2 1999 the loss snapped a five game winning streak for the cardinals who had won eight straight at home and are 5 1 on their 12 game homestand the cubs have won 6 of their last 11 after ron coomer and julio zuleta singled gary matthews jr homered off cardinals starter mike matthews 2 3 to give the cubs a 3 1 lead in the second chicago put it out of reach with four runs in the seventh reliever mark james walked tavarez and eric young and ricky gutierrez singled with one out to load the bases for sosa sosa hit a 2 1 pitch off jason christiansen for his 22nd home run and sixth career grand slam to make it 7 1 sosa had been 0 for 8 in his career against christiansen sosa is 5 for 8 with the bases loaded this year with 2 grand slams and 19 runs batted in the cardinals albert pujols led off the sixth with a triple and scored on ray lankford s single to make it 7 2 sosa made a diving catch to rob the pinch hitter stubby clapp s bid for a hit to end the inning sosa hit his second home run of the game off luther hackman with a man on in the ninth to make it 9 2 it was the 47th multihomer game of his career craig paquette hit a pinch hit homer off tom gordon and jim edmonds had an r b i single to make it 9 4 mike matthews who allowed three runs on six hits and struck out four in four innings has lost his last three decisions reds 11 brewers 3 four homers back to back big innings pitching so bad that a third baseman took the mound cincinnati had all of it in its first home victory in june jason larue hit the first of the reds four homers as they ended an eight game losing streak and another disastrous homestand by beating milwaukee cincinnati the major leagues worst home team won at cinergy field for the first time since may 26 finishing a 1 5 homestand full of boos and blunders when you start putting a bunch of runs together there s a sigh of relief said sean casey who also homered and had a single and a double the brewers pitching was so bad that third baseman mark loretta took the mound in the eighth and he did much better than the brewers first two right handers loretta gave up one hit and one walk and struck out two in a scoreless inning he had not pitched since he was at northwestern in 1993 michael tucker and pokey reese also hit homers and ken griffey jr extended his comeback tear with two more hits in cincinnati s most lopsided victory of the season griffey has hit safely in all six games since returning from a torn hamstring going 9 for 21 with one homer and six r b i he came out of the game in the sixth when the reds led 11 0 braves 7 marlins 2 greg maddux allowed only three hits in seven innings and atlanta finally won again at turner field the braves snapped a three game home losing streak and avoided dropping into third place behind the marlins whose season high winning streak ended at five atlanta moving a game ahead of the marlins in the n l east had not been in third this late in the season since 1991 maddux 7 5 did not allow a hit until preston wilson led off the fifth with his ninth homer wilson also snapped an 0 for 23 slump john mabry accounted for florida s other run hitting a two out homer in the sixth maddux struck out seven six on called strikes and got eight other outs on grounders before he was replaced by mike remlinger at the beginning of the eighth having thrown just 79 pitches phillies 9 pirates 5 omar daal and his defense nearly squandered a seven run lead but philadelphia held on to beat host pittsburgh and end the pirates season high four game winning streak philadelphia opened a 7 0 lead in the sixth helped by four pirate errors including the first two by jason kendall as an outfielder and a double by travis lee on a ball kendall could not field the lead seemed safe with daal 8 1 who has the league s best winning percentage and has been the phillies...
#WORDS = 734 - 1464
Special words launer schilit torres torricelli receivable bored researched branded separates appraising
lawmakers investigating the collapse of enron turned their attention to wall street today criticizing financial analysts for continuing to urge investors to buy enron stock even as the company headed toward bankruptcy several members of congress suggested that wall street firms hunger for investment banking business and other conflicts kept them from leveling with investors four prominent wall street analysts appeared before the senate governmental affairs committee today and defended their decisions to maintain buy ratings on enron until close to the company s collapse they said they had no way of knowing that the company was issuing deceptive financial statements without accurate and complete financial reporting from a company said curt launer an analyst with credit suisse first boston i simply do not have the proper tools to do my job but other witnesses and some lawmakers said the analysts should have seen red flags in enron s financial disclosures as early as two years ago and taken enron s refusal to explain its complicated finances as a sign of trouble why didn t these analysts press for answers or see the lack of information as a warning sign asked senator susan m collins republican of maine howard m schilit an accounting expert who runs the center for financial research and analysis an independent research firm scoffed at the excuse that analysts could not have detected problems at enron everybody is saying they hid from us he said but beginning in march 2000 he added there were a string of warning signs in enron s public securities filings the problem mr schilit said is that analysts who question the value of a popular company are branded as controversial if you want to move up the hierarchy of the wall street establishment you don t rock the boat he said today s hearing was the first to make a direct examination of wall street s role in enron s rise and fall but lawmakers are expected to spend more time on the matter in coming months they will focus on contentions that wall street firms agreed to invest in partnerships central to enron s collapse in exchange for underwriting business from the company they are also expected to examine allegations that enron officials threatened to stop doing business with the firms if they did not invest in the partnerships lawmakers also want to know whether wall street officials learned about enron s hidden problems through their involvement in the partnerships and yet did not tell the public the bigger issue is what did these investment banks know and when did they know it a congressional investigator said today in a separate hearing today the executive director of the pension benefit guaranty corporation the federal agency that oversees traditional defined benefit pension plans said that one of enron s three pension plans would be underfinanced by at least 125 million if the agency was forced to take it over that amount could change with interest rates and stock prices the executive director steven a kandarian told the senate finance committee this afternoon the agency will not assume any pension obligations or sustain a loss if the enron plans remain ongoing he said at the senate governmental affairs hearing lawmakers praised recent proposals by wall street s self regulatory organization to improve the integrity of wall street research but some said legislation was still needed to reduce deep conflicts within wall street brokerage firms all too often they said the expectation of honest and impartial research by analysts is undermined by the desire of the analysts firms to win investment banking business from the same companies they are appraising business that generates much of the firms revenue and ultimately of analysts pay most financial analysts wear two hats said senator carl levin a michigan democrat one of the allegedly independent analyst of publicly traded companies and the other hat is that of the sophisticated insider investment banker analyst who helps his company attract investment banking business but while there is support on the panel for legislation of some sort critics question whether congress or anyone else will ever take...
#WORDS = 56 - 109
Special words comany pummeled backer waiting equity existence jeopardy oppel retain 00
can enron survive the comany the nation s largest energy trader and a major backer of president bush has been pummeled by a securities and exchange commission investigation and an unusual 1 2 billion reduction in shareholder equity from deals with partnerships involving its former chief financial officer based in houston enron used to be considered all powerful in natural gas and electricity trading but now investors are waiting to see whether it can retain its investment grade credit rating if it doesn t other traders may refuse to do business with it and lenders may demand immediate repayment putting enron s existence in jeopardy richard a oppel jr
#WORDS = 582 - 1317
Special words mcculley unfettered capitalism paulsen disaffected impinge reexamination tammany truncate 1871
the enron scandal which began with transactions complex enough to make an accountant s eyes glaze over has by now morphed into something more an american style cultural spectacle complete with congressional hearings movie rights and memorabilia available on e bay see page 4 but enron is more than fodder for radio talk shows and late night comedy routines its collapse was unsettling in a way that seized and continues to hold the nation s attention ultimately say analysts and commentators from a variety of disciplines the public fascination with enron expresses an anxiety over whether the trust people place in their employers political leaders and even capitalism as it is currently practiced is misplaced other relatively recent high profile cases of financial malfeasance like michael r milken s manipulation of junk bonds or the failure of lincoln savings loan under charles h keating jr generated headlines and plenty of commentary but there was never a sense that the average person cared that much beyond the soap operatic pleasure of following the doings of the rich and unscrupulous enron s demise however is the first morality play of the post boom era one of the reasons scandals have become so important in our societies today is because they impinge upon the forms of trust which underpin social relations and institutions said john b thompson who teaches sociology at cambridge university and is the author of political scandal power and visibility in the media age the enron scandal makes them realize how fragile this trust is and how much they stand to lose if and when this trust is betrayed mr thompson said and unlike the savings and loan scandal which was difficult for ordinary people to understand and relate to personally the enron scandal can be easily translated into the language of the greed of corporate bosses and the losses suffered by ordinary individuals in the most general sense the enron debacle is about whether we as employees investors consumers and voters were suckered into buying a boom time vision of new business paradigms one way stock prices and pain free choices only to find after the economy turned that much of the promise was a fantasy if not a fraud it s a case where the rich guy took the upside and stuffed the poor guy with the downside said paul mcculley chief economist at pimco an investment firm and it exposed genuine economic uncertainty among people if it could happen there then maybe some of the other supposed icons of capitalism were not as robust and enduring as people had thought enron mr mcculley said is a reminder that market based economies are inherently volatile something many people had forgotten after a 10 year business expansion the longest on record indeed part of what gives the story of enron its power is the timing the end of the 1990 s boom could be dated as far back as march 2000 when the nasdaq began its tumble and many dot coms were exposed as empty vessels but with few other signs of deterioration the nation remained at least partly in denial through that year and into last year the consensus through last summer was that the expansion had slowed but not expired and that its bounty most notably the huge projected federal budget surplus remained intact after sept 11 confidence and optimism waned and then as if to confirm that an era had ended the nation s seventh largest company one that had reinvented itself using the tools of the moment technology faith in markets canny lobbying and an ability to exploit deregulation to create new businesses went poof if the crash of enron had happened at the peak of the business cycle it would not have had the same effect on the psyche said laura tyson dean of the london business school it was 2001 before people accepted that the business cycle was not dead this happened at the moment of acceptance and it s become emblematic the saga was distinguished by two other factors as well more than anything it had victims lots of them average people who woke up one day to find that their jobs and retirement savings had disappeared and that sent shivers down the spines of the new investor class the millions of working people...
#WORDS = 347 - 752
Special words biznes biznesmen pro sweet businessmen irs shrub ivins ply premium
e mail krugman nytimes com memo to critics of the media s liberal bias the pinkos you really should be going after are those business reporters even i was startled by the tone of the jan 21 issue of investment news which describes itself as the weekly newspaper for financial advisers the headline was paul o neill s sweet deal the blurb was irs backs off closing loophole averting tax liability for execs and treasury chief it s not really news that the bush administration likes tax breaks for businessmen but two weeks later i learned from the wall street journal that this loophole is more than a tax break for businessmen it s a gift to biznesmen and it may be part of a larger pattern confused in the former soviet union the term biznesmen pronounced beeznessmen refers to the class of sudden new rich who emerged after the fall of communism and who generally got rich by using their connections to strip away the assets of public enterprises what we ve learned from enron and other players to be named later is that america has its own biznesmen and that we need to watch out for policies that make it easier for them to ply their trade it turns out that the sweet deal investment news was referring to the use of split premium life insurance policies to give executives largely tax free compensation you don t want to know the details is an even sweeter deal for executives of companies that go belly up it shields their wealth from creditors and even from lawsuits sure enough reports the wall street journal former enron c e o s kenneth lay and jeffrey skilling both had large split premium policies so what other pro biznes policies have been promulgated lately last year both houses of congress passed bankruptcy reform bills a reconciliation conference scheduled for sept 12 got put off now those bills are getting another hard look they toughened the law for ordinary families but the bills also included a provision that would have made it much easier for companies to transfer assets to special purpose entities putting them out of creditors reach to be fair there are sometimes sound business reasons for transferring assets off a company s books but now that we know about chewco and jedi and ljm and all those other entities that enron executives used to siphon off cash you have to wonder whether the legislation would really facilitate business or whether it would mainly serve the interests of biznes that at any rate is what 35 law professors argued in a jan 23 letter sent to congressional leaders if this goes through declared elizabeth warren of harvard law school the incentive for corporations will be to move more and more transactions off the books my wife who is also an economist was more succinct this turns us into russia the issue of business versus biznes is not one that divides neatly along party lines democrats as well as republicans have taken money from lobbyists and like the democratic national committee chairman terry mcauliffe profited personally from investments in companies that later collapsed and the new bankruptcy laws had overwhelming support on both sides of the aisle but right now the bush administration is busily doing the most important thing a government can do to promote biznes nothing so far harvey pitt the chairman of the securities and exchange commission has failed to propose any meaningful reform in the lax rules that made enron possible and as floyd norris noted last week in this newspaper the bush administration has balked at providing a significant increase in the s e c s budget even though it pays far less than the private sector and more amazingly less than other federal regulatory agencies the administration s curious passivity could be a simple matter of faith in the genius of capitalism as paul o neill put it but as many reporters have noticed several high ranking administration officials had prior business careers that in retrospect look more like biznes careers as molly ivins explained at length in her book shrub the list includes george w bush himself it s still possible that the administration will wake up and realize that we seriously need reform but the impression i...
#WORDS = 61 - 124
Special words racked admissions kurt admitted erasing obstruction strikes 00 000 0000
in its first week at bat in its obstruction of justice trial arthur andersen racked up a lot of strikes first a judge ruled that a series of accounting scandals at the firm could be presented to the jury as motive for its destruction of enron documents then the judge denied the firm access to notes of earlier statements by the government s chief witness and an andersen partner admitted to erasing enron e mail messages just before the firm became aware of an informal investigation still andersen got a few hits like admissions from some of its partners called as government witnesses that they had never been told to destroy documents to keep them from investigators kurt eichenwald trial documents agence france presse