uis branch of Wachovia Securities LLC $1.4 million for failing to deliver certain prospectuses and product descriptions to clients. The customers bought select investment products between July 2003 and December 2004. The company was also fined for supervisory failures but did not admit or deny the charges. FINRA found that Wachovia didn’t provide prospectuses in 6,000 out of about 22,000 transactions that occurred between the 2003-2004 timeframe. The transactions’ market value was about $256 million. Prospectuses were not delivered for various reasons, including coding errors and failing to make sure vendors performed the proper deliveries. At the time of the failures, Wachovia Securities was a subsidiary of Wachovia Corp., which was bought by Wells Fargo & Co. last fall.
AIG gives stake to reduce loan
NEW YORK — American International Group Inc. said Thursday it will reduce outstanding federal loans by $25 billion by giving the government a preferred stake in two units that will be spun off from the insurance giant. AIG is placing two life insurance subsidiaries — American International Assurance Co. and American Life Insurance Co. — into special purpose vehicles ahead of planned initial public offerings. SPVs are entities sometimes set up ahead of the spinoff or sale of a unit to separate its operations from the parent company. As part of the preferred stake plan, the Federal Reserve Bank of New York will receive preferred interests in the SPVs which will eventually be independent companies once a public offering is completed.
Kimberly-Clark cuts 1,600 jobs
CHICAGO — Household-products maker
Kimberly-Clark Corp. said Thursday it plans to cut 1,600 jobs, or 3 percent of its global work force, as it slims down in the tough economy. The maker
of Kleenex tissues,
Huggies diapers and scores of other household items employs 53,000 people around the world. It plans to make the cuts primarily among salaried and nonproduction workers. Executives said the company doesn’t plan to close any plants. Profits at Kimberly-Clark have fallen for the past 18 months, as shoppers cut back on spending because of the recession, high unemployment and the
housing downturn. Meanwhile revenue, which had been steadily rising, began to fall late last year.
From Wire Reports