Firm investigated in bid-rigging scheme
WASHINGTON --- A politically connected financial firm and two of its executives were indicted Thursday for what prosecutors say was a bid-rigging scheme in the municipal bond business.
The charges in the nine-count indictment filed Thursday in Manhattan federal court against CDR Financial Products Inc. are the first resulting from the Justice Department's probe of the mammoth municipal bonds industry. CDR, based in Beverly Hills, Calif., has also come under scrutiny for its ties to New Mexico Gov. Bill Richardson.
The indictment alleges two CDR executives and one former executive engaged in bid-rigging conspiracies in which CDR was hired by public entities that issue municipal bonds to act as broker and conduct a supposedly competitive bidding process.
Banks' borrowing from emergency fund eases
WASHINGTON --- Banks trimmed their borrowing from the Federal Reserve's emergency lending program over the past week, evidence that some credit problems are easing.
The Fed said Thursday that commercial banks averaged $22.6 billion in daily borrowing over the week that ended Wednesday. That's down from $23.8 billion in the week ended Oct. 21, and much lower than $112 billion a year ago at the height of the financial crisis.
Amount to go back to fleeced investors varies
DALLAS --- The lawyer tracking down money lost in what authorities say was a massive Ponzi scheme run by R. Allen Stanford says he hopes to gain control of more than $1.5 billion that would be returned to fleeced investors.
Court-appointed receiver Ralph Janvey filed a report in federal court in Dallas late Wednesday outlining his plan to go after the $1.5 billion and provide allegedly defrauded Stanford investors a return of as much as 20 cents on the dollar.
But John Little, a lawyer appointed to represent investors, said they should prepare to get back as little as 2 cents on the dollar.
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