Friday, May 18, 2007

LEGISLATION

The House of Representatives weakened legislation intended to create a tougher regulator for Fannie Mae and Freddie Mac, complicating the future of the bill. The amendment would allow the regulator to limit the size and growth of the firms' portfolios only when they threaten the companies' soundness. A vote is expected Tuesday.

CapitalSource of Chevy Chase said it agreed to acquire TierOne of Lincoln, Neb., for about $34.46 a share in cash and stock, or about $622 million. TierOne shares closed at $24.92. TierOne is the holding company for TierOneBank, which says it is the largest publicly traded financial institution headquartered in Nebraska.

The transaction is subject to regulatory approval and is expected to close in the fourth quarter.

John Marciano, head of Royce Investment Group when it helped underwrite Xybernaut's initial public offering, pleaded guilty March 8 to a federal charge that he conspired to launder the proceeds of a securities fraud involving Xybernaut from July 1996 to May 2001. Fairfax's Xybernaut makes wearable computers. Robert Oosterwyk, managing director of businesses based in the Cayman Islands that prosecutors said helped conceal proceeds of the scheme, pleaded guilty this month to one count of operating an illegal money-remitting business.

John Kealey, chief executive of iDirect Technologies, plans to resign Aug. 31. Kealey led the Alexandria broadband-access company for six years. VT Systems, iDirect's parent, formed a committee to work with Kealey until a new chief executive is found.

Edward J. Arcuri resigned as Emergent BioSolutions' chief operating officer, and President Daniel J. Abdun-Nabi will assume the duties of that job, the Rockville company said.

Compiled from reports by Washington Post staff writers, the Associated Press and Bloomberg News.