Ex-Riggs Executive to Be Held Until Trial
U.S. Magistrate Judge Alan Kay ordered former Riggs Bank executive Simon P. Kareri held indefinitely pending Kareri's anticipated indictment and trial on bank fraud charges, ruling Kareri presented a risk of flight. Kareri, 47, and his wife, Nene Fall Kareri, 40, have been in federal custody since they were arrested by FBI agents Thursday. They are the first individuals charged in the ongoing investigations into Riggs's international and embassy banking business. Nene Fall Kareri will have a separate hearing before Kay today on whether she should also be detained until trial.
Fannie Mae Portfolio Shrinks in April
Fannie Mae continued to shrink its investment portfolio in April even though the Office of Federal Housing Enterprise Oversight recently said that as of the end of March the housing finance company had adequate reserves. At the end of April, Fannie's portfolio stood at $851.9 billion, down about $26 billion from a year ago, according to its monthly report. OFHEO said this month that Fannie has a $4 billion surplus. Freddie Mac, Fannie's smaller rival, reported that, year to date, its investment portfolio had grown for the third straight month, at an annualized rate of 4.2 percent.
Independence Puts Off Shareholder Meeting
Independence Federal Savings Bank, a District institution embroiled in a proxy contest for two of its nine board seats, indefinitely delayed its June 8 annual shareholder meeting.
Independence, one of the nation's few black-owned financial institutions, had rescheduled the meeting May 11 at the recommendation of the Office of Thrift Supervision. The OTS was worried that shareholders had been given inaccurate information by opposing sides in the director election. Independence said more time was needed to "give shareholders an opportunity to receive additional disclosure and to consider fully their voting decision."
US Airways Gets More Time to Find Suitors
A bankruptcy judge granted US Airways' request for a 30-day window in which other parties can make bids to supplant its proposed merger with America West Holdings. If no other suitors emerge, the two carriers will exclusively negotiate a merger. Separately, the judge allowed a provision that either airline would receive a $15 million fee if the other party walks away from the deal.