Mack Returns to Morgan Stanley
Morgan Stanley named John Mack chairman and chief executive, bringing back a former president to rebuild morale and revive businesses that slipped while Philip J. Purcell ran the world's largest securities firm.
Mack, 60, returns to Morgan Stanley four years after Purcell, 61, bested him in a boardroom battle. A 29-year veteran of the firm who went on to run Credit Suisse First Boston until he again was ousted in 2004, Mack was elected by the board yesterday, taking over immediately, the company said in a statement.
Unusual Subpoenas in Lay Case
The judge overseeing the fraud case against former Enron executives Kenneth L. Lay and Jeffrey K. Skilling agreed to issue unusual subpoenas to determine whether prosecutors are intimidating potential witnesses.
U.S. District Judge Sim Lake ordered the Enron Task Force and lawyers defending 15 people who have pleaded guilty to Enron-related crimes to give him copies of all communications between the government and the witnesses on any efforts to "inhibit the ability" of the individuals to help Lay or Skilling prepare a defense.
Defense lawyers have repeatedly complained that prosecutors are chilling the cooperation of potential witnesses. At least 15 people, including former chief financial officer Andrew S. Fastow, have pleaded guilty to Enron-related crimes, and most are cooperating with prosecutors in exchange for leniency.
Glassman Named Acting SEC Chief
President Bush named Securities and Exchange Commission member Cynthia A. Glassman as acting chairman of the agency, the White House said. Glassman, a Republican, will head the SEC starting today until departing Chairman William H. Donaldson's successor is confirmed.
Bush yesterday formally nominated Rep. Christopher Cox (R-Calif.) as the next SEC chairman, the White House said. The action sent Cox's name to the Senate, which will hold hearings and vote on his nomination. Bush announced the pick June 2.
Bush Names Next FERC Chief
President Bush named Joseph T. Kelliher, an advocate of expanded authority for regulators to police power markets, to succeed Patrick H. Wood as Federal Energy Regulatory Commission chairman. Kelliher was a policy adviser to former energy secretary Spencer Abraham and a member of Bush's transition team before joining FERC on Nov. 20, 2003. Wood announced on April 6 that he planned to step down.
Delphi Restates Profit for 5 Years
Delphi, the largest U.S. auto-parts maker, restated earnings for the past five years, ending a 10-month internal accounting probe that led to the ouster of five executives. The company reduced 2001 retained earnings by $265 million and 2002 profit by $24 million and narrowed its 2003 loss by $46 million. Delphi also said its 2004 loss widened to $4.8 billion from the $36 million it had reported. The SEC is still investigating Delphi's accounting, the company said.
Visteon to Cut Retiree Benefits
Visteon, following the lead of other auto suppliers, plans to cut health care and life insurance benefits for white-collar employees.
Visteon spokeswoman Robin Pannecouk said salaried employees who retire on or after June 1, 2007, will no longer receive company-subsidized health insurance. Visteon also will discontinue its life insurance program for those who retire after June 1, 2007.
Exelon said the Federal Energy Regulatory Commission approved its $12 billion stock merger with Newark-based Public Service Enterprise Group. The merger, announced in December, still requires a host of approvals and reviews by federal and state bodies. Shareholders of both companies vote on the merger in July.
ConAgra Foods said its fourth-quarter profit declined 40 percent, to $101.9 million, primarily due to a 12 percent drop in earnings from its packaged meats, which make up one-fourth of the retail division. Sales fell 4 percent, to $3.71 billion.
Compiled from staff and news service reports.