News Briefs

Guilty plea for former Air Force/Boeing official; Greenspan on banks' interest-rate exposure; Adecco cut to junk; restatement for Telephone and Data Systems; verdict in $7.2 million theft from Goldman Sachs.

  • Darleen Druyun, once the No. 2 acquisitions official for the Air Force and later a vice president at Boeing Co., pleaded guilty to conspiracy for discussing a job with Boeing while still overseeing Air Force business dealings with the company. She agreed to cooperate with prosecutors, who continue to investigate the executive who hired her, former Boeing chief financial officer Michael Sears.

“I deeply regret my actions,” a tearful Druyun reportedly told Judge T.S. Ellis III in U.S. District Court for the Eastern District of Virginia. Druyun, who will be sentenced on August 6, faces a possible five years in prison and a fine of up to $250,000, reported the Associated Press.

  • In prepared testimony before the Senate Banking Committee, Alan Greenspan said that the banking industry is “adequately managing its interest-rate exposure,” reported Reuters. The Fed chairman added that the industry “appears to have been sufficiently mindful of interest-rate cycles and not to have exposed itself to undue risk.” He was not specific on the outlook for U.S. monetary policy, added the wire service, which noted that stocks and Treasury prices fell immediately after Greenspan’s testimony.
  • Standard & Poor’s cut the credit rating of Adecco to junk because the world’s largest temporary help firm, currently embroiled in an accounting scandal, said it was further delaying the publication of its 2003 audited results.
  • Telephone and Data Systems Inc. and its subsidiary United States Cellular Corp. announced that they will restate their financials for the years ended 2002 and 2003. The restatement will reflect a reclassification between goodwill and licenses and the recording of additional deferred taxes, and non-cash expenses related to these items.

U.S. Cellular will reduce its earnings by $30 million and TDS, by $24 million. TDS owns 82 percent of U.S. Cellular.

  • Joyti De-Laurey, a former personal assistant at Goldman Sachs, was found guilty of stealing more than $7.2 million from her bosses after a high-profile three-month trial in London, according to Reuters. She was found guilty on all 20 counts of using false checks or obtaining money transfers by deception.

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