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 Thu, Mar 26 1992 Date: Thu, 26 Mar 92 05:44:31 EST Message-ID: 03-26 0000 DECISIONLINE: Business Law USA TODAY Update March 26, 1992 Source: USA TODAY:Gannett National Information Network MILKEN TOPS FORFEIT LIST: A Justice Department report out Thursday shows a record $643.6 million was forfeited to federal authorities last year. The largest single contributor was former junk bond king Michael Milken, who accounted for $176 million. Nearly two-thirds of the 31,087 seizures in 1991 involved the Drug Enforcement Administration, typically cash, cars or real estate from drug suspects. HEARING HELD ON S&L PLAN: A hearing was held Wednesday before the Thrift Depositor Oversight Board on a controversial plan to bail out some savings and loan shareholders. Critics and supporters of the "early resolution" program gave their sides in Washington, D.C. Supporters say it could save taxpayers a lot of money, but critics say shareholders are supposed to lose money when investments fail. (For more, see special S&Ls package below.) ROCKWELL TO PLEAD GUILTY: Rockwell International Corp. Thursday will plead guilty to 10 violations of hazardous waste laws arising from its operation of the Rocky Flats nuclear weapons plant and pay a fine of nearly $20 million, The Associated Press reported Wednesday. The pleas, in Denver federal court, will cap a three-year investigation. Rockwell officials declined to comment. TRANSIT STRIKE CONTINUES: A proposal to end a 10-day-old strike by Pittsburgh transit workers while negotiations continued was rejected Wednesday by transit officials. Disputes remaining after July 1 would have been settled by binding arbitration. Transit officials said union positions are too easily adopted by arbitrators, who don't have to come up with the money. EMPLOYEES GET $42 MILLION: The Iowa Supreme Court Wednesday affirmed a lower court decision and awarded $42 million in cost-of-living adjustments to state employees represented by the American Federation of State, County and Municipal Employees Council 61. State employees are now due a 3% to 4% adjustment over two years, including back interest. The ruling could also affect 22 other states with similar laws. CONTRACTOR ACTIONS IN QUESTION: Some contractors in Maryland have been falsely submitting names of minority subcontractors to obtain public works contracts, according to a grand jury report. In some cases, subcontractors were paid for the right to use the name. State law requires contractors to award 10% of contracts to minority subcontractors. LIMITS PLACED ON MACHINES: Lawmakers in Nebraska have approved a bill limiting places where cigarette vending machines are allowed. Under the measure, cigarette machines will be allowed where alcohol consumption is legal but must be in an area covered by a liquor license. The goal of the measure is to cut down on sales of cigarettes to minors. APPEALS COURT CLEARS RATE HIKE: An appeals court ruling in Ohio has cleared the way for Columbus Southern Power Co. to impose a 28.4% rate hike. The $202.5 million increase would add $11.94 to the bill of an average ratepayer. The power company has not decided when to raise rates, according to a spokesman. WOMAN SUES OVER TRANSFUSION: In Edwardsville, Ill., Deanna Croffoot - whose 10-year-old son, Keith, contracted AIDS in 1986 from a blood transfusion - is suing the American Red Cross and two blood-supply companies. The suit claims that suppliers didn't screen donors, properly test and process blood supplies or warn customers of the HIV risk. Croffoot seeks $75,000. Red Cross officials said they have not seen suit. SPECIAL PACKAGE ON S&LS: PLAN WOULD AID SHAREHOLDERS: The savings and loan bailout has already cost taxpayers more than $200 billion, and now regulators have come up with a controversial plan that would mean bailing out some S&L shareholders as well. Under the "early resolution" plan, regulators would intervene before sick S&Ls fail and try to revive them, instead of going in after they fail and cleaning up. EARLIER INTERVENTION SOUGHT: Regulators want to get into the S&L business at an earlier point than they currently do. Normally, regulators wait until an S&L is insolvent, then close it down. They sell the thrift's deposits and some of its assets to a healthy bank or thrift and auction the remaining, riskier assets at a big loss to taxpayers. Or regulators simply liquidate the thrift. Shareholders get nothing. RYAN SAYS PLAN WOULD SAVE MONEY: Timothy Ryan, director of the Office of Thrift Supervision, and other regulators, say they can save taxpayers' money by going in and trying to save sick thrifts. One plan would have regulators selling the still-solvent thrifts to healthy banks and offering shareholders equity in the acquiring bank. Critics say it is a waste of money because it is just delaying the thrifts' collapse. (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