Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (22607)	8/13/2002 7:02:03 PM
From: marek_wojna	Read Replies (2) \| Respond to of 74559

Hi, Maurice Watch for the things to come..... <<<WASHINGTON -- The House Financial Services Committee served Citigroup Inc. a subpoena Tuesday demanding documents that detail any purchase or acquisition of initial public offering shares by WorldCom Inc. executives. The subpoena is specifically seeking information about IPOs underwritten since 1996 by Citigroup's brokerage division Salomon Smith Barney Inc. House Financial Services Chairman Michael Oxley, an Ohio Republican, has given Citigroup executives 10 days, or until 5 p.m. Aug. 23, to turn over the material. The committee issued the subpoena after failing to reach agreement with Citigroup on the handing over the documents. The subpoena seeks documents relating to the sales of IPO shares to several WorldCom executives, sales that produced lucrative returns. Salomon telecommunications analyst Jack Grubman told the committee in official testimony earlier this year that he didn't know and couldn't recall whether WorldCom executives had special access or information about the IPOs. "But I can't categorically say it didn't happen," he said at the time. IPO QUESTIONS • David Chacon, Who Filed Suit Against Salomon, Leaves CSFB 08/12/02 • Salomon Used Special Accounts To 'Flip' CEOs' IPOs, Suit Says 07/19/02 The subpoena specifically seeks information relating to Mr. Grubman's involvement in the distribution of any Salomon underwritten IPO securities issued to WorldCom executives. It also requests information on IPO shares issued to WorldCom executives through friends-and-family programs, as well as the particular details of all transactions involving Salomon underwritten IPOs and WorldCom executives. Salomon Smith Barney, according to a former broker who is suing the firm, curried favor with corporate executives by directing hefty IPO allocations outside their personal accounts, allowing them to flip the shares for fast profits. The broker, David Chacon, who recently left Credit Suisse First Boston, says that the separate accounts allowed the Citigroup's securities unit to enrich favored executives, who in return gave Salomon investment-banking business. Salomon strongly denies the allegations and says its initial-public-offering allocations were entirely proper. A Salomon spokeswoman says Mr. Chacon isn't credible because he was fired after being "caught stealing commissions. He engaged in unauthorized trading and was fired for it." The Salomon spokeswoman says that his claims are "completely without merit," and that his complaint contains "gross factual inaccuracies." Mr. Chacon's lawyer, Jeffrey Liddle, says there is no theft involved, and that a commission was simply put into the wrong account. He adds that Salomon didn't report the allegations against Mr. Chacon to regulators. Updated August 13, 2002 5:37 p.m. EDT

To: Maurice Winn who wrote (22607)	8/13/2002 7:05:44 PM
From: carranza2	Read Replies (1) \| Respond to of 74559

As I recall, the B.B.M designation was only good for a few hours, but I've ignored the rules. If it's not a life peership, well, I'll make up my own rules... Glad you enjoyed the Barron's stuff. A bit superficial, but valuable nonethless. If a stodgy publication such as Barron's believes we are on the edge of a tech rebound, then perhaps the worst is in fact over. It's a sentimental favorite, though I no longer read it regularly. I first learned about Q while reading Barron's and was instantly intrigued. The rest is history.