JP Morgan CEOs unaware of the offshore deals with Enron
In an affidavit
to US lawmakers today, the Chairman and Chief Executive of Citigroup
Inc., Mr. Sanford Weill said that he was unaware of the transactions
done by Citigroup with an offshore entity DELTA and Enron Corp.
The affidavit was sent today to the Senate Permanent Subcommittee
chairman of the Subcommittee, last week requested CEOs of both
Citigroup and JP Morgan to give explanations regarding the secretive
deals with Enron through offshore companies that helped in hiding
the loans to Enron.
CEO of JP Morgan too signed a similar affidavit today saying that
the bank did not control MAHONIA, another offshore entity that
is also subject to investigations for its deals with Enron.
that he had already directed the CFO of Citigroup's Corporate
and Investment Bank, Barbara Yastine, to investigate the matter
further and provide detailed information to the subcommittee.
is of the view that Citigroup used DELTA registered in the Cayman
Islands and JP Morgan used MAHONIA to help Enron in facilitating
the hidden $100 million loans.
to the investigators of the subcommittee, Enron obtained $4.8
billion from Citigroup with 14 transactions through DELTA.
of Citigroup, J.P.Morgan Chase asked to clarify the deals with
Levin, D-Mich., who is investigating the ties of leading investment
banks with bankrupt Enron Corp., has asked J.P.Morgan Chase and
Citigroup to give a clarification on using offshore companies
in their deals with Enron.
was sent on Thursday to the chairman and chief executive officer
of Citigroup, Sanford Weill and J.P. Morgan Chase president and
CEO William Harrison giving them a deadline of Monday to provide
the information personally.
is the head of the Senate Governmental Affairs Committees
investigative panel. A committee investigator, at a hearing of
the panel Tuesday, testified that several Wall Street investment
banks including J.P.Morgan and Citigroup had lend billions of
dollars to Enron and helped the company mask its true financial
position. The banks were also aware that the company was getting
loans by using misleading accounting. In return of big fees and
favors, some banks even helped Enron in its deceptive accounting.
the officers of Citigroup and J.P. Morgan Chase denied any offense
in testimony at the hearing.
to the investigators, the banks used intricate financial transactions
to enhance Enron's weak cash flow to match profit growth on paper.
and Silicon Valley Bank sign agreement
managed Web hosting and IT service provider and Silicon Valley
Bank (SVB) announced signing of an agreement in which customers
of SVB will receive preferential pricing for Inflows Outsourced
IT Services and Web Hosting.
to Inflow, the agreement will include all clients of SVB in Arizona,
Arkansas, Colorado, Louisiana, Montana, New Mexico, Oklahoma and
between 2 private Swiss banks announced
and Darier Hentsch, the two esteemed names in the Swiss banking
industry have announced their merger putting an end to weeks of
rumour. The merger would combine their businesses into a single
institution with the name Lombard Odier Darier Hentsch & Cie.
(LODH) with assets worth $90 billion under its management.
times, private banks are facing competition from giants like UBS
and CSFB, who are also eying high-net-worth individual clients
having CHF1 million ($637,000) to invest. Another major problem
is an assault on Swiss banking secrecy laws by the European Union
(EU). The EU is demanding that information on clients be given
to the tax-authorities of neighbouring countries. This would be
a major setback to private banks, which rely on discretion as
an important competitive advantage.
private banks are known to be struggling with earnings having
fallen by 25-50% last year.
But a planned
partnership limits the scope of private banks to achieve economies
of scale or to afford sophisticated technology needed to serve
expected in the wake of the merger, which will combine Lombard's
staff of 1,530 with 560 at Darier into a single work force of
about 1,800. The new bank will have branch offices and 20 subsidiaries
across the world when it comes into being on July 1 and will remain
a private partnership.
lends baht 6 bn to SMEs in Q1
to Pansak Leelawannakulsiri, head of the SME division of Bangkok
Bank (BBL), 6 billion baht have been lent to small and medium-sized
enterprises (SME) during the first quarter of this year.
industrial sector obtained 40% of the total loan, the remaining
went to the retail, wholesale and service sectors. The bank plans
to lend 20 billion baht by the end of the year.
The bank sought
to lend to small firms that held bad debts, in particular those
having completed debt restructuring. The Small Enterprise Loan
Guarantee Corporation will be acting as a guarantor for the SMEs,
which do not have their own guarantors.
The bank has
set up special loans divisions for the task and also plans to
organise SME workshops nationwide, starting in Chiang Mai. The
bank is working with many state agencies including SME Development
Institute, the Industry Ministry and the National Office for Science
and Technology Development toward the promotion of SMEs.
Punpiamrat stated the bank lent nearly 80-100 million baht per
month to SMEs in the agricultural sector in the first quarter
and has projected lending 1.4 billion baht by the end of the year.
01 , 2002
offers half of V2 label to US bank
Branson has offered half of his loss-making V2 record label to
a US investment bank. The move was aimed at reducing debt and
comes in the wake of losses amounting to £130 million incurred
by Barfair, a holding company owned by Branson. Morgan Stanley
Dean Witter has already taken over 47.5% of V2, through warrants
attached to bonds issued for an earlier refinancing in 1998.
new deal, the bank has agreed to lend the business an additional
$20 million with Sir Richard lending the same amount. Competition
from mobile phones, Internet and satellite television have landed
record companies in trouble.
of V2 has fallen from £335-200 million over the past two
years but costs continue to rise. The company has however, benefited
from the reinvention of Welsh musician Tom Jones through his successful
album, Reload, while the Stereophonics, led by Kelly Jones, produced
Britain's biggest selling rock album last year.
Lynch, SSB, CSFB top US Underwriters
to data collected by Thomson Financial Securities Data, companies
have sold $245 billion of US debt, in spite of the recession.
The companies wanted to take advantage of low borrowing costs
before a rise in interest rates and extend debt maturities.
that the Federal Reserve may increase interest rates by June as
the US economic situation shows signs of improvement. The corporate
debt of $818 billion sold was slightly above estimates.
Salomon Smith Barney unit, Credit Suisse Groups Credit Suisse
First Boston unit, and Merrill Lynch & Co, have retained their
leading positions as the top 2001 investment-grade, junk and convertible
securities underwriters respectively in the first quarter.
to Thompson, Salomon gained a 22.8% share of the $196.8 billion
market by arranging $44.8 billion of investment-grade bond sales.
JP Morgan with $31.4bn of sales came in second and Lehman Brothers
came in third.
was placed fourth, by selling $7.3billion of its own bonds while
Banc of America Securities LLC held the 5th position.
In the junk
market, Credit Suisse arranged $3.04bn of sales. It acquired 16.7%
share of a $18.2-bn market. Deutsche Banc Alex Brown and Banc
of America were placed second and third respectively.
Merrill Lynch handled $8.7bn of sales, or 29.1 % of a $30-bn market.
Followed by Goldman Sachs and Salomon.
Governors & G-7 Finance Ministers to discuss economy recession
The G-7 finance
ministers and governors of the World Bank, International Monetary
Fund, and central banks of the European Union and Russia met to
discuss the global recession and tracking down of terrorist financing.
The IMF has suggested rescheduling of foreign debt and reduction
in budget deficits. Argentinas and Japans recession
were also discussed in the gathering. The discussion even included
financing poor countries, deflating terrorist financing and create
an international practice to extend time to reorganise debt-ridden
countries as in the case of corporations.