Business & Finance
Bank of America Corp., the nation's third-largest bank, said Friday that it's been notified that its securities division faces possible civil action by the Securities and Exchange Commission (SEC). The SEC alleges that the company's San Francisco office improperly stored some documents and failed to produce requested ones in a timely manner during a regulatory inquiry that began two years ago. The bank, based in Charlotte, N.C., said it is "cooperating fully" with the inquiry and is submitting reasons why it should not be charged.
Officials at IBM's South Korean affiliate were among 48 people indicted Sunday in a $55 million corruption probe, the Yonhap news agency reported. Several government officials also were named in the indictment, which accused IBM Korea and local subsidiaries of securing procurement contracts through bribes and prearranged bids. In a statement, IBM Korea denied approving slush funds.
An investor lawsuit against Hollinger International claims that bargain sales and high management fees led to at least $300 million in losses at the Chicago-based publisher. The suit, unsealed Friday, was filed in Delaware by Cardinal Value Equity Partners. It contends that as part of a $500 million sale of newspapers, the audit committee OK'd two purchases - for just $1 - to a company owned by former chief executive Conrad Black and ex-chief operating officer David Radler. Executives treated the company "like their private piggy bank" while a compliant board and audit committee did little to stop them, the suit claims.