REGULATORS
Panel Endorses SEC Nominees
Rep. Christopher Cox (R-Calif.), the White House's pick for chairman of the Securities and Exchange Commission, won the unanimous endorsement of the Senate Banking Committee, sending his nomination to the full Senate for a confirmation vote, which could come before the August recess. The committee also approved the nominations of Roel C. Campos and Annette L. Nazareth to the two Democratic seats on the five-member board.
The committee also approved the nominations of John C. Dugan to be head of the Office of the Comptroller of the Currency, John M. Reich to lead the Office of Thrift Supervision and Martin J. Gruenberg to become vice chairman of the Federal Deposit Insurance Corp.
LITIGATION
WorldCom Settlement Approved
A judge gave her blessing to a deal under which former WorldCom finance chief Scott D. Sullivan will forfeit his Florida mansion and his retirement account to settle with investors who lost billions when the company was toppled by a fraud scandal. U.S. District Judge Denise L. Cote granted preliminary approval to the settlement two weeks before Sullivan is likely be sentenced to prison time for his role in the $11 billion WorldCom fraud.
She also gave approval to settlements with two other former WorldCom executives, controller David F. Myers and accounting director Buford T. Yates Jr., the final defendants in a class-action suit that has netted more than $6 billion for investors.
INVESTIGATION
Wal-Mart Faces EEOC Probe
The U.S. Equal Opportunity Commission is investigating claims that Wal-Mart Stores violated a 2001 settlement barring discrimination against disabled workers, an EEOC attorney said. The new investigation was sparked by Wal-Mart managers' testimony in a recent New York suit successfully brought by a man with cerebral palsy.
"Over the years, we've had complaints, but some of the stuff we're now seeing bears looking into," EEOC attorney Mary J. O'Neill said. If Wal-Mart is found in violation, it will have 45 days to comply, the agreement says.
Wal-Mart spokesman Marty Heires said the company hasn't violated the agreement.
FINANCIAL SERVICES
Morgan Stanley to Cut 1,000 Jobs
Morgan Stanley, which has been struggling to increase the size and productivity of its broker force, said in a memo to employees that it plans to eliminate about 10 percent, or 1,000, of its brokers in the next few months. The memo, written by Zoe Cruz, the acting president, also said it is slowing down its training program for new brokers, focusing instead on recruiting "experienced brokers who are focused on serving high net-worth individuals."
