Frank P. Quattrone, the former Credit Suisse First Boston banker convicted May 8 of obstructing justice, was denied a new trial by U.S. District Judge Richard Owen. Quattrone claimed Owen made errors in his instructions to the jury during the trial. Quattrone, who faces sentencing Sept. 8 in a New York federal court, could serve 10 to 16 months in prison. Quattrone's first trial on the same charges ended last October in a mistrial.
Microsoft Plans Windows XP Update
Microsoft said it will offer a major update to its Windows XP operating system in August to improve protection against viruses and to help prevent intrusion by hackers. The software manufacturer said it will begin distributing Windows XP Service Pack 2 free over the Internet to customers who already own Windows XP. Customers may also request the update on CD. Microsoft had planned to introduce the security update in June, but it said it took the extra time to make certain that it worked with other software. The company said it still is unable to provide the date of the release.
United Airlines will trim costs in ground operations and is considering cuts at its headquarters, executives said. Employees on a company hotline were told that cost-cutting they've seen so far is "just the beginning" as the carrier tries to emerge from Chapter 11 bankruptcy protection. The company cited a recent study that found it less efficient than its competitors in some areas.
Piper Jaffray was fined $2.4 million by NASD for improper sales of initial public offerings. The agency accused the securities firm of "spinning" hot IPOs between 1999 and 2002, offering shares to 22 corporate executives to try to win investment banking business, according to a statement on PR Newswire. The executives made a total of $2.4 million in profits, NASD said.
Domino's Pizza sold $337 million in shares during its initial public stock offering. The Ann Arbor, Mich., pizza chain sold 9.4 million shares at $14 each. Buyout firm Bain Capital and Domino's founder Thomas Monaghan sold 14.7 million shares.
Sears's head of department stores stepped down, and that role will be incorporated into an expanded position that also focuses on the retailer's push into non-mall locations. Sears will look outside the company for a president of Sears Retail, the company said in a statement. Chief executive Alan J. Lacy will assume the responsibilities of the new post in the interim.
CoolBrands International, whose frozen treat brands include Eskimo Pie, acquired Parmalat's U.S. southern ice cream distribution business, Kinnet Dairy. CoolBrands subsidiary Eskimo Pie Frozen Distribution is acquiring Kinnet's customer lists, route lists, delivery vehicles, trademarks and inventory from Parmalat subsidiary Farmland Dairies.
T-bill rates were mixed. The Treasury Department sold $18 billion of three-month bills at a 1.315 percent discount rate, down from 1.320 percent last week, and $16 billion of six-month bills at 1.630 percent, unchanged from last week. The rates understate the actual return to investors -- 1.336 percent for three-month bills, with a $10,000 bill selling for $9,966.80, and 1.666 percent for a six-month bill selling for $9,917.60.
The Boston Globe has reached a tentative five-year pact with the Boston Newspaper Guild, the union representing more than 1,000 reporters, editors, photographers and advertising salespeople who have been working without a contract for 31/2 years. The contract, which is retroactive to Jan. 1, 2001, includes wage hikes of 7.5 percent over the first four years and increased employer funding of the employee health plan. A ratification vote is set for Aug. 5.
Tribune's Newsday and Hoy newspapers and Hollinger International's Chicago Sun-Times were censured by the Audit Bureau of Circulations after the publications said they had overstated their circulation. The audit bureau said it will require the newspapers to be audited every six months instead of annually, and it will exclude the three papers' circulation claims from its semiannual circulation report.
Stillwater Mining, the only U.S. producer of palladium and platinum, was struck by about 900 miners following the union's rejection of a three-year labor contract. The union's local president and the Montana company's chairman expressed willingness to continue negotiations.
Joseph P. Nacchio, who resigned as chief executive of Qwest Communications International in 2002, has invested in a small, privately held New Jersey company, BCN Telecom, that buys phone and Internet service from major carriers and packages and resells it to small- and medium-sized businesses.
DaimlerChrysler will move production of future versions of its Mercedes-Benz C-Class cars away from its biggest German plant, costing 6,000 jobs, unless it gets about $620 million a year in cost savings, company executives said. Personnel chief Guenther Flieg said the automaker will move C-class production to the north German city of Bremen and to East London, South Africa, where labor costs are lower. Workers have offered to forgo a contractual raise of 2.8 percent slated for 2006, which would save $223 million, but have balked at deeper cuts.
Sony said it plans to demonstrate a working version of its next-generation PlayStation game console in May at the E3 electronics exposition in Los Angeles. Also, the president of Sony Computer said the PlayStation Portable, or PSP, would be sold starting in March.
Virginia Commerce Bancorp, Arlington-based parent of Virginia Commerce Bank, earned $3.4 million (38 cents a share) in the second quarter, compared with $2.8 million (33 cents) in the corresponding period a year ago. For the six months ended June 30, earnings were $6.5 million (74 cents), compared with $5.3 million (62 cents) a year ago. The company said loans increased 19 percent during the first half of the year.
SunTrust Banks said second-quarter profit rose 10 percent as it collected more fees from consumer banking and losses from bad loans fell by more than half. Net income increased to $364.8 million, from $330.4 million a year earlier, the Atlanta company said in a statement. Revenue rose 7.1 percent, to $1.5 billion.
Compiled from reports by the Associated Press, Bloomberg News, Dow Jones News Service and Washington Post staff writers.