It had been two days since U.S. lawmakers negotiated all night to finish rules that would reshape the business of Wall Street. The 20-hour session left legislators, aides, lobbyists and regulators exhausted. Almost no one had a grip on all the details.
Goldman Sachs Group Inc. , which fell 13 percent yesterday after U.S. regulators announced fraud accusations, didn’t disclose that it was warned nine months ago that investigators wanted to bring a case, people with direct knowledge of the talks said.
Deer Consumer Products Inc. and Sino Clean Energy Inc. , U.S.-listed Chinese companies battered by fraud allegations in online reports, are blaming their big share slides on a blogger who uses the pseudonym Alfred Little .
For three years, former AOL Inc. executives Steven Rindner and Mark Wovsaniker have fought regulators’ claims that they helped their company artificially inflate advertising revenue just before its ill-fated 2001 merger with Time Warner Inc. In June, the U.S. Supreme Court gave them reason to hope.
The U.S. Securities and Exchange Commission, facing growing judicial scrutiny over how it resolves enforcement matters, was asked by a federal judge in Milwaukee to provide a “factual predicate” for a proposed settlement with a company accused of accounting fraud.
The U.S. Supreme Court relaxed the deadlines for shareholder fraud lawsuits, saying investors can proceed with accusations that Merck & Co. misled the public about the risks posed by its now-withdrawn Vioxx painkiller.
As the housing market deteriorated in April 2007, Fannie Mae Chief Executive Officer Daniel Mudd reported to Congress on his company’s health. The firm’s exposure to subprime loans, he told lawmakers, “remains minimal, less than 2.5 percent of our book.”