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BUSINESS
June 27, 2002 | DEBORA VRANA, TIMES STAFF WRITER
Stocks plunged Wednesday, then recovered most of their losses, in a volatile session triggered by WorldCom Inc.'s disclosure of an allegedly massive accounting fraud. Coupled with the day's heavy trading volume--the New York Stock Exchange had its busiest session this year--the dramatic turnaround raised hopes that the market may have reached at least a near-term bottom after five straight weekly declines, analysts said.
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BUSINESS
June 27, 2002 | WALTER HAMILTON, TIMES STAFF WRITER
WorldCom Inc.'s disclosure of a potentially titanic accounting fraud ratchets up the pressure on securities regulators and criminal prosecutors to prove they are taking aggressive steps to punish executives who break the law. In a demonstration of that urgency, the Securities and Exchange Commission filed a civil-fraud lawsuit against WorldCom in U.S. District Court in Manhattan on Wednesday evening.
BUSINESS
June 27, 2002 | From Bloomberg News
New York Atty. Gen. Eliot Spitzer said Wednesday that his office will investigate analyst commentary on WorldCom Inc., which had a "buy" rating from star telecom analyst Jack Grubman at Citigroup Inc.'s Salomon Smith Barney from 1997 through this April. Just Monday, with the stock down more than 90% from December, Grubman cut his rating to "under-perform" from "neutral." "It did catch many people's eye that he finally issued a downgrade," Spitzer said.
BUSINESS
June 27, 2002 | E. SCOTT RECKARD, TIMES STAFF WRITER
As WorldCom Inc. bonds plunged Wednesday, news of the long-distance company's alleged $3.9-billion accounting fraud dragged down securities of other telecom companies and the banks that have financed them. Investors in Clinton, Miss.-based WorldCom held debt securities with a face value of $28 billion, including $11.9 billion issued last year in the biggest bond sale by a U.S. company.
BUSINESS
June 27, 2002 | MARK FINEMAN, TIMES STAFF WRITER
As telecommunications giant WorldCom Inc. tumbles toward almost certain bankruptcy, the campaign finance industry that fuels politics on Capitol Hill is in danger of losing yet another multimillion-dollar player.
BUSINESS
June 27, 2002 | P.J. HUFFSTUTTER, TIMES STAFF WRITER
Amid shock waves from the WorldCom Inc. accounting scandal that rocked corporate America on Wednesday, federal investigators slapped the nation's second-largest long-distance company with a civil fraud lawsuit to prevent it from disposing of assets, destroying documents and paying off senior officers.
BUSINESS
June 27, 2002 | PETER G. GOSSELIN and JAMES FLANIGAN, TIMES STAFF WRITERS
WASHINGTON -- Until WorldCom Inc.'s admission that it improperly accounted for $3.9 billion in expenses, the revelations of business misdeeds beginning with Enron's collapse in early December looked as if they would produce little more than some arcane accounting changes and a few prosecutions.
BUSINESS
March 28, 2002 | ELIZABETH DOUGLASS, TIMES STAFF WRITER
House investigators Wednesday began reviewing three boxes' worth of internal documents from Global Crossing Ltd., the ailing telecommunications firm accused of using suspect accounting to mask the company's deteriorating finances. The documents were delivered late Tuesday to the House Energy and Commerce Committee, which has said alleged misdeeds at the company warrant greater scrutiny. It's unclear whether Global Crossing delivered all the information requested by the committee this month.
BUSINESS
March 27, 2002 | JAMES S. GRANELLI, TIMES STAFF WRITER
A creditor's effort to evict Global Crossing Ltd. from a New York site where a fiber-optic cable from England hooks into the network of U.S. land lines would wipe out a third of Global's transatlantic telephone traffic and slash the company's value to potential buyers, the company argues in a court document. The attempt by Level 3 Communications Ltd.
NEWS
March 15, 2002 | EDMUND SANDERS and JEFF LEEDS, TIMES STAFF WRITERS
Federal prosecutors Thursday hit accounting firm Andersen with a criminal indictment for allegedly orchestrating the "wholesale destruction" of tons of Enron Corp. documents, raising new doubts about Andersen's survival. The one-count indictment is the first of what Justice Department officials hinted could be a string of criminal charges arising from the collapse of energy giant Enron, which filed for Chapter 11 bankruptcy protection Dec. 2 amid an accounting scandal.
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