Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.law From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: law Fri, Mar 6 1992 Date: Fri, 6 Mar 92 05:54:04 EST Message-ID: 03-06 0000 DECISIONLINE: Business Law USA TODAY Update March 6-8, 1992 Source: USA TODAY:Gannett National Information Network FDIC REJECTS MILKEN SETTLEMENT: The Federal Deposit Insurance Corp.'s board of directors Thursday rejected a proposed $1.3 billion settlement of lawsuits against jailed financier Michael Milken. The FDIC released a letter from the board to Federal District Judge Milton Pollack, who brokered a deal among lawyers for the government, Milken, his former firm and thousands of individuals, rejecting the proposal. (For more, see special Milken package below.) FORESTS DESIGNATED OWL HABITAT: The U.S. Forest Service Thursday designated 5.9 million acres of Northwest old-growth forests as habitat for rare northern spotted owls, which would result in a cutback on logging, not a ban. A federal judge in Seattle a year ago banned logging and set a Thursday deadline for a plan to protect the remaining 3,000 pairs of owls. BIEBER URGES PASSAGE OF BILL: United Auto Workers President Owen Bieber urged passage of controversial bill that would restrict sales of Japanese autos in the USA. Speaking before a House committee Thursday, Bieber said, "The jobs of hundreds of thousands of UAW members, hundreds of thousands of other American workers ... are at stake in the battle to preserve our domestic auto industry." SOME SAY CONSUMERS WOULD SUFFER: Members of the House Energy and Commerce Committee, which held hearings Thursday on proposed trade legislation that would cut Japanese car sales by 25% over the next five years in the USA, argued consumers would be hurt most by the legislation. "What do we limit next? VCRs and TVs, just because we don't build them anymore?" said Rep. Fred Upton, D-Mich. SUIT FILED OVER WELL: A suit in Maryland seeking to stay a December permit given to Texaco Inc. to drill an exploratory well in Charles County will be filed by the Chesapeake Bay Foundation so that further study can be done. Texaco plans a 10,000-foot well near Faulkner, Md. PROPOSAL WOULD HIKE RATES: A Justice Department proposal circulating through Congress and obtained by the Associated Press would require telephone companies to increase rates to allow law officers to more easily wiretap suspected criminals. The proposal, which the Justice Department would not comment on, requires phone companies to have new high-tech equipment for wiretaps, with costs going to customers. DIRECTORS BEFORE CONGRESS: Directors Martin Scorsese and Martin Wise testified before a congressional subcommittee Thursday, urging Congress to require warning labels on movies that have been substantially altered for TV or video. "When we butcher films ... we are betraying (our) tradition of excellence," Scorsese said. Some subcommittee members said the issue may not warrant action by Congress. MACY'S TO CLOSE STORES: R.H. Macy & Co., in Chapter 11 bankruptcy court reorganization, announced Thursday that it will close 57 stores. Stores to be closed: Five I. Magnin stores, all Fantasies by Morgan Taylor specialty stores, and several other specialty stores. Kurt Barnard of Retail Marketing Report says more closings are likely as Chapter 11 allows Macy to break leases and close unprofitable stores. OTS FILES MOTION: The Office of Thrift Supervision filed a motion to have its administrative subpoenas enforced against the law firm of Kaye, Scholer, Fierman, Hays & Handler, which worked for Charles Keating's failed Licoln Savings and Loan, its former managing partner, and two other attorneys. A hearing has been scheduled for Monday in U.S. District Court for the District of Columbia. HISTORY MADE IN GEORGIA: Leah Sears-Collins, 36, becomes the first black woman on the Georgia Supreme Court Friday when she takes the oath of office. She is also the youngest Supreme Court Justice since the Civil War. Her first-cousin, John Charles Thomas, became the first black justice on Virginia's Supreme Court in 1983. "It's a great day for Georgia," said state Rep. Tyrone Brooks. SPECIAL PACKAGE ON MILKEN: NOT ENOUGH INFO FOR FDIC: The Federal Deposit Insurance Corp., in rejecting a proposed settlement of suits against Michael Milken Thursday, said it didn't have enough information, among other things, about how much each defendant would pay. Another reason for the rejection was because the FDIC didn't receive the right to "terminate their participation" if it wasn't satisfied. NEXT STEP NOT KNOWN: Lawyers involved in the proposed settlement of suits against Michael Milken weren't sure what would happen next in the settlement process. One result of the rejection is that the people and agencies who sued Milken and his former employer, Drexel Burnham, Lambert, claiming they were defrauded, do not know what their recourse will be or when they will see any money. HEARING TO GO AHEAD: Judge Milton Pollack told Reuters news service that a hearing Friday on the proposed settlement will proceed and that the FDIC may still approve the settlement. Under the settlement, Milken, in prison in California, would have paid a total $900 million in restitution. Other former Drexel employees would have paid $300 million. Drexel insurers would have paid $100 million. (End of package.) Business Law Editor: Jason P. Smith. (919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM