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The U.S. Treasury Department will lend GMAC Financial Services an additional $3.8 billion to cover mortgage-related losses. The new cash infusion brings the government's aid to GMAC to $16.3 billion and its stake in the bank to 56%.

Citigroup Inc. announced it will repay $20 billion in emergency loans it received as part of the $245-billion TARP program to rescue the U.S. bank system. Similarly, Wells Fargo & Co. will sell shares to raise $10.4 billion to repay $25 billion in bailout money.

The U.S. federal government is revising the terms of its $150-billion bailout of American International Group Inc. (AIG) in an effort to ease the financial burden on the company and preserve its value over a longer period. The new plan calls for the reduction of interest and dividend owed to the government, grants AIG access to an additional $30 billion in funding, cuts AIG's credit line with the Federal Reserve from $60 billion to between $20 billion and $25 billion, and raises the possibility AIG will be broken up completely. AIG is expected to post a quarterly net loss of $60 billion.

The U.S. federal government's decision on Sunday to inject $20 billion into ailing financial giant Citigroup Inc., and absorb as much as $249 billion of Citigroup's potential write-downs caused the company's stock to skyrocket 58% in Monday trading. Shareholders and financial analysts are calling for a radical restructuring of the bank following its bailout. Article discusses the structuring of Citigroup's rescue, and possible measures undertaken by the bank to streamline its operations.

The U.S. Government has stepped in to save insurance giant American International Group Inc. from looming bankruptcy by extending the company a loan for $85 billion in exchange for 79.9% of AIG in equity participation notes. The loan is payable in two years and is secured by AIG's assets. AIG's chief executive Robert Willumstad will step down and be replaced by Edward Liddy, former Allstate Corp. chief. AIG's stock dropped 21% on Tuesday to $3.75, a 94% drop in value thus far in the year.

Negotiations between the US government and financial institutions may result in a temporary lock on certain subprime home loan interest rates. This move is expected to ease mortgage holders' and mortgage banks' financial problems and stall rate of home foreclosures.

The Group of 7 industrialized nations plans to establish rules for investment funds controlled by governments, and are also pressuring China to allow its currency to rise more quickly. While the G-7 agrees that China's artificially low currency impacts global trade, an agreement has not been reached regarding an appropriate alignment of the yuan with the euro and the dollar.

The structured investment vehicle (SIV) market, launched by UK firm Gordian Knot Ltd., is facing a possible economic and financial crisis. Industry observers fear that large SIVs will have to unload mortgage-backed securities and other assets totaling billions of dollars. The significant negative impact on banks and other financial institutions is discussed.

Hedge fund managers in the UK have drafted a proposal that would require more information be provided to banks and investors regarding risks hedge funds take, the manner in which their assets are valued, and disclosure of the stakes owned in companies. The self-regulatory proposal is aimed at mitigating the turmoil created by the credit market crisis.

President George W. Bush is changing his policies on the environment and energy, in the face of strong international and domestic opposition. The recent shift of power in the U.S. government, w ith the Democrats now controlling Congress , is also contributing to this polic y change .

Henry Paulson, U.S. Secretary of the Treasury, supports China's economic rise and foreign economic policies, and feels that the United States will benefit from their stronger economy . Mr. Paulson also expressed his strong support for globalization.

Henry M. Paulson, Jr., chief executive of Goldman Sachs Group Inc. of the United States has been appointed the United States Secretary of the Treasury. The appointment was made by President George W. Bush. Mr. Paulson will be ranked with the secretary of defense and secretary of state in the cabinet.

Christopher Cox has been appointed the new Chairman of the United States Securities and Exchange Commission. He plans to implement the controversial hedge fund industry legislation and is pushing for better disclosure of executive compensation.

United States Securities and Exchange Commission have cracked down on American corporations and fraud post-Enron. The Commission has regulated deferred-prosecution agreements, the company is charged with criminal behavior but puts reform measures in place and on a certain date the potential charges are dropped.

Christopher Cox has been nominated to be the Chairman of the United States Securities and Exchange Commission by President George W. Bush. Mr. Cox is seen as a champion of the business lobby.

William Donaldson, Chairman of the United States Securities and Exchange Commission under pressure, has resigned. Mr. Donaldson was respected by investors, however he angered big business and unnerved Washington by being an aggresive regulator. The United States Chamber of Commerce brought a case against the United States Securities and Exchange Commission questioning a mutual-fund regulation championed by Mr. Donaldson.

William Donaldson as head of the United States Securities and Exchange Commission must approve the New York Stock Exchange Inc. acquisition of Archipelago Holdings Inc. Mr. Donaldson will have input over the merged companies trading and governance regulation as it becomes a publicly traded company.

William Donaldson, United States Securities and Exchange Commission is reconsidering his plan for the way stocks are traded after receiving business and political feedback. And the proposal to give shareholders more power to appoint directors at troubled corporations has come under fire.

A stock trading regulation proposal by the United States Securities and Exchange Commission would establish 'best price' as the top priority for stock brokers on investor stock orders.

Conrad Black and David Radler, both former corporate officers at newspaper publishing house Hollinger International Inc., have been charged by the Securities and Exchange Commission with defrauding Hollinger by engaging in transactions that were financially advantageous to them personally but damaging to the company. The Securities and Exchange Commission will be seeking a fine from the accused as well as substantial payments to account for the money they pocketed at their company's expense.

After several years during which the Securities and Exchange Commission has imposed a slew of strict rules and restrictions aimed at preventing corporate corruption, big business has begun to fight back. Business groups such as the Managed Funds Association and the Business Roundtable are launching campaigns to challenge the agency's right to continue creating new regulations at its current pace.

Prosecutors indicted four former senior executives of U.S. Foodservice, a unit of Koninklijke Ahold N.V., on securities fraud and other charges. Also, the SEC filed suit against the four for participating in a scheme to overstate Ahold income.

AT&T Corp.'s board of directors have approved a plan that entails spinoffs and tracking shares. The move paves the way for the eventual breaking up of the company.

AT&T Corp. is considering the possibility of breaking itself up into four divisions. The plan would lead to the formation of individual wireless and broadband, consumer, and business operations.

After several months of looking for a possible buyer for its consumer long-distance telephone service, AT&T is reportedly thinking now about spinning off that part of its business. If that happens, the firm would still have its business long-distance service, and network and wireless. Discussions with Nextel and BT continue and could change the outcome of what AT&T ends up keeping.

Since losing the bidding war to acquire their rival, Digex Inc., Exodus Communications Inc. and Global Crossing Ltd. are expected to go through with merger plans this time. This would join the No. 1 and No. 2 web-hosting companies in the U.S. Global Crossing's GlobalCenter would bring equipment, infrastructure, and its fiber-optic network to the deal; Exodus would pay $6.5 billion in stock for GlobalCenter.

WorldCom Inc. is close to concluding a deal to acquire Intermedia Communications Inc. WorldCom would purchase Intermedia for almost $3 billion (3.34 billion euros).

Global Crossing Ltd.'s planned sale of its local-exchange operations to Citizens Communications Corp. is close to reaching an agreement. The deal is valued at approximately $3.6 billion (3.78 billion euros).

Sprint Corp. is expected to withdraw from its merger deal with WorldCom Inc. The move will enable Deutsche Telekom AG to make an offer of over $110 billion (115.2 billion euros) to buy Sprint.

Lucent Technologies Inc. is studying the possibility of spinning off its microelectronics division. Analysts believe that such a deal could be worth over $50 billion (52.07 billion euros).

The parent-company boards of Royal Dutch/Shell Group will consider strategies concerning recent revelations that the oil firm's natural gas and oil reserves had been significantly overstated. The resultant 20% reduction in those figures has led to significant drops in stock values.

The Securities and Exchange Commission is investigating a wide range of industries in efforts to clamp down on securities fraud. Investigations include petroleum industry reporting of oil reserves and high technology industry executive compensation practices.

The article assesses the Securities and Exchange Commission's ability to effectively handle investigations based on the staff and resources made available to it. From 1981 to 2001, the SEC's filings caseload grew 81%, while its staff increased by only 29%.

The US Securities and Exchange Commission has proposed new regulations that would give company shareholders more power in choosing directors. However, investors and companies are expected to dispute the issue.

The New York Stock Exchange has named John Reed as its interim head. Reed is replacing former chairman Dick Grasso, who was forced to resign from his post.

The new chairman of the United States Securities and Exchange Commission (SEC), William Donaldson, is planning to make the agency into a more flexible entity. Donaldson wants to prove to investors that there is no rigging of markets going on.

The investigation of the WorldCom Inc. collapse finds Salomon Smith Barney allocating shares of the WorldCom's initial public offerings to the company's former CEO Bernard Ebbers.

Shareholders of cable company, Adelphia Communications are angered by the company's faliure to disclose information about its part in borrowing up to $2.7 in loans.

Comcast Corp. has made an unsolicited bid to acquire AT&T Broadband from AT&T Corp. The unsolicited bid is valued at $44.5 billion (52.5 billion euros).

AT and T's board of directors meets to discuss merging some of its divisions with those of British Telecommunications and the possibility of merging with Nextel Communications.

The US Securities and Exchange Commission is expected to approve new regulations that are designed to improve corporate board independence. The rules will cover firms that are listed on the Nasdaq or on the New York Stock Exchange.

The US Securities and Exchange Commission is calling on American stock exchanges to provide information on top executives' salaries. The SEC also wants to know what the processes are for determining the salaries.

The US Securities and Exchange Commission will make it more difficult for defendants who reach civil charges settlements to challenge the agency's charges. Defendants will have more difficulty in challenging charges made in the original case.

WorldCom Inc. may have inflated its 2001 profits by utilizing tracking stock for major expenses. The company is being investigated for allegedly inflating profits by over $9 billion (8.42 billion euros).

This article documents the efforts by Gene Morse, Cynthia Cooper, and Glyn Smith to uncover the massive accounting fraud at WorldCom that ultimately saw the company's stock drop fro a high of just over $15 a share to below $1.00 a share.

A criminal probe is being launched against Qwest Communications International Inc. by the U.S. Department of Justice. The company is being investigated for its accounting practices. Qwest is already being probed by the Securities and Exchange Commission for how it reported its 2000 and 2001 revenues.

Adelphia Communications Corp. has filed for bankruptcy protection under Chapter 11. The cable company, once the sixth-largest in the U.S., is being probed for possible criminal and regulatory violations.

Adelphia Communications Corp. announced that it will take up to $500,000 (528,821 euros) in reserve in order to cover loans that were not disclosed earlier. The company, which could file for bankruptcy in the near future, said it has around $1.9 million in undisclosed loans.

Qwest Communications International Inc. saw its share value rise 73 cents to $4.88 following the resignation of Joseph P. Nacchio, its chairman and chief executive. Qwest's board, which had become frustrated with the company's financial and regulatory problems, asked Nacchio to leave.

AT&T Corp. is planning to restructure its credit facility in order to move forward with its planned merger with Comcast Corp. AT&T has an $8 billion (8.51 billion euros) credit facility.