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To: stockman_scott who wrote (5011)	8/21/2002 7:28:23 PM
From: 4figureau	Respond to of 89467

Oxley Expands Citigroup IPO Probe to Global Crossing (Update1) By Rob Urban Washington, Aug. 21 (Bloomberg) -- Congressional investigators expanded their probe of Citigroup Inc.'s alleged allocation of IPO shares to favored executives for investment banking business to include Global Crossing Ltd. House Financial Services Committee Chairman Michael Oxley, an Ohio Republican, asked Citigroup Chief Executive Officer Sanford Weill, Global Crossing founder and Chairman Gary Winnick and Chief Executive Officer John Legere for any documents detailing distribution of shares in IPOs to Global Crossing officials. The panel is already investigating Citigroup's dealings with executives at WorldCom Inc. as Congress increases scrutiny of Wall Street's role in the collapse of Enron Corp., WorldCom and Global Crossing. The probe is looking at allegations that the world's largest financial services firm awarded sought-after IPO shares to favored executives in exchange for investment banking business. ``This could be embarrassing to Citigroup, but the practice of spinning -- allocating hot IPO shares to prospective clients in an effort to win their business -- wasn't illegal at the time,'' said John Coffee, a Columbia University law professor. ``It's only with proposed rules'' by the National Association of Securities Dealers ``that spinning will become Illegal,'' Coffee said. The Securities and Exchange Commission, the NASD, U.S. Justice Department and state attorneys general are investigating analysts' practices. They are focusing on whether analysts touted stocks or awarded IPO shares to win business underwriting stocks and bonds and advising on mergers. Focus on Grubman The investigation by Oxley's committee centers on Jack Grubman, a former telecommunications analyst for Citigroup's Salomon Smith Barney unit. Last week, the committee subpoenaed Citigroup for records of any IPO allocations to WorldCom executives. Citigroup has said that analysts play no part in allocating IPO shares. ``We will continue to cooperate with the committee's inquiry,'' said Citigroup spokeswoman Arda Nazerian. The investigation is part of the committee's ``continuing look at questionable practices in the area of corporate financial management and governance and the effects of securities analysts' conflicts of interest,'' the committee said in a statement. Salomon and Merrill Lynch & Co. underwrote Global Crossing's initial public offering of shares in September 1998. The deadline for the new request is Sept. 4. The committee also extended the deadline for Citigroup to respond to the subpoena issued last week for WorldCom documents to Monday, Aug. 26, from Friday, Aug. 23. Sold Majority Stake Global Crossing spokeswoman Becky Yeamans said the company ``just received the letters, and we are reviewing them.'' Global Crossing sought bankruptcy protection on Jan. 28. The House committee also said it is investigating the sale of a majority stake in Global Crossing to an Asian group. Earlier this month, Global Crossing agreed to sell a majority stake for $250 million to Hong Kong-based Hutchison Whampoa Ltd. and Singapore-based Singapore Technologies Telemedia Pte. The fiber-optic network operator filed for bankruptcy reorganization in January, listing $22.4 billion in assets. Global Crossing's Legere has said the offer from Hutchison and ST Telemedia ``was seen to provide the value that the bankers, creditors and the company would support.'' The company's creditors endorsed the agreement. Hutchison and ST Telemedia had previously offered to pay $750 million for a larger share of the company. Global Crossing and creditors settled for a lower price as demand for fiber-optic lines and communications has slumped, stock analysts have said. Former Salomon Smith Barney broker David Chacon has alleged in a lawsuit that WorldCom founder Bernard Ebbers and other executives of telecommunications companies received stock in IPOs as a ``secret kickback'' for investment banking business. Chacon also alleged that Salomon advised Global Crossing's Winnick to sell stock in the company worth more than $500 million to diversify his holdings at a time when Grubman had a buy recommendation on the stock. quote.bloomberg.com

To: stockman_scott who wrote (5011)	8/22/2002 10:53:00 AM
From: Jim Willie CB	Read Replies (1) \| Respond to of 89467

strange phenomenon I aint seen before now with S&P stats PPTeam and major Houses may have done a REPAIR JOB but I believe it is a CON JOB market internals like Adv/Decl and Volume dont look great (they can only control a few key bigname influential stocks) but market technicals are looking decent again hovering now near key Moving Average levels enough to fool many people even the USdollar is looking like a 20MA/50MA bull cross is imminent amazing what you can do with govt money behind you but they cannot change some facts of life earnings suck, forward guidance will suck, consumer spending is starting to suck, capex still largely sucks, LeadEconIndicators starting to suck, trade gap sucks bigtime, fed deficits worse than suck, key BigMoney like Saudis starting to depart (which sucks), war prospects cast a sucky pall over the world economies we are setting up an extreme low pressure vulnerable zone but at least market technicals for S&P and US$ looking good AS BILLY CRYSTAL SAYS: "BETTER TO LOOK GOOD, THAN FEEL GOOD, DARLING !!!" the recent bond rallies put the USdollar is a worse position regarding lower rate prospects necessary for bond principal gains regarding comparative competitive rates versus other currencies something ugly this way comes / jim