Monday, March 7, 2005

More Settlements by WorldCom Bond Underwriters

At the end of last week, more investment banks agreed to settle claims by purchasers of WorldCom bonds underwritten by the firms before the company's collapse in 2002.  On Thursday, March 3, Bank of America agreed to pay $460 million to the claimants, and on Friday, March 4, four more investment banks paid up: Lehman Brothers for $62.7 million, and CSFB, Goldman Sachs, and UBS Warburg each for $12.5 million.  This is on top of the rather hefty $2.58 billion -- yes, that's a B -- payment by Citigroup.  Among the investment banks that have not yet entered into a settlement are J.P. Morgan, Deutsche Bank, and ABN AMRO.  And, of course, a rather closely watched criminal prosecution should wrap up in the next few days against former CEO Bernie Ebbers.  An AP story here discusses the settlements in the bondholder suit. (ph)

Securities, WorldCom | Permalink

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