New Century officials are accused of fraud
WASHINGTON --- Federal regulators on Monday accused three former top executives of collapsed mortgage lender New Century Financial Corp. of fraud, saying they misled investors as the company's subprime loan business was failing in 2006.
In a case stemming from the mortgage market meltdown, the Securities and Exchange Commission filed a lawsuit seeking injunctions, and unspecified civil fines and restitution against New Century's former CEO and co-founder Brad Morrice, former chief financial officer Patti Dodge and former controller David Kenneally.
The SEC also wants the three barred from serving as officers or directors of any public company and reimbursement of their bonuses or stock option awards.
GM to spend millions to get Volt road-ready
DETROIT --- General Motors Co. said Monday it will spend $700 million at eight Michigan facilities to get its new rechargeable electric car road-ready -- a technological and economic boost for its home state.
GM officials detailed their investment plans for the Chevrolet Volt on the floor of its assembly plant that straddles the border between Detroit and tiny Hamtramck. The plant, which will begin mass producing the Volt in late 2010, is getting a $336 million upgrade that includes new machinery and other equipment. Michigan last year approved $135.2 million in tax incentives for the sites.
Dubai World likely to sell assets to pay debt
DUBAI, UNITED ARAB EMIRATES --- Dubai World, the cash-strapped conglomerate at the center of Dubai's debt crisis, appears set for an unaccustomed period of retrenchment after the emirate's top finance official said Monday the company may need to change course and unload assets as it struggles to pay back lenders.
What eventually gets sold remains uncertain. Clearer is the city-state's position that the government itself won't be responsible for Dubai World's debts, renewing questions about its backing of other state-run companies.
"Like any company that has commitments, part of getting liquidity is selling some assets," Dubai Finance Department Director-General Abdul Rahman al-Saleh said in an interview aired by Al-Jazeera.
He added the restructuring was aimed at keeping Dubai World viable going forward.