Tuesday, June 10, 2003

Business Digest

President, others out at Freddie Mac

WASHINGTON - Mortgage-market giant Freddie Mac announced abruptly Monday that it had fired its president because he didn't fully cooperate with an internal review of the company's accounting, now being investigated by federal regulators.

The government-sponsored company whose stock is widely traded said it had fired the president and chief operating officer, David Glenn, and that chairman and chief executive Leland Brendsel had resigned. Vaughn Clarke, executive vice president and chief financial officer, also resigned.

E-Trade introduces a portable mortgage

SAN FRANCISCO - Online financial services rebel E-Trade Group Inc. on Monday offered fixed-rate loans that borrowers can take with them as they change addresses.

The portable mortgages are designed to appeal to people who want to lock in low interest rates, even if they sell their home and buy a new one before the end of the typical loan's 30-year duration. The interest rate is slightly higher than on a conventional mortgage.

Six-month T-bill rate is lowest on record

WASHINGTON - Interest rates on short-term Treasury securities fell in Monday's auction, with rates on six-month bills dropping to their lowest level on record.

The Treasury Department sold $18 billion in three-month bills at a discount rate of 1.005 percent, down from 1.110 percent last week. An additional $18 billion was sold in six-month bills at a rate of 0.980 percent, down from 1.095 percent.

Two reports recount how WorldCom was run

McLEAN, Va. - The former top executives at WorldCom Inc. ruled with unquestioned authority, steering the telecommunications company into multibillion-dollar acquisitions on a whim, according to two reports released Monday.

Former Attorney General Richard Thornburgh's report explored the corporate culture. The second document, by lawyer William McLucas, related how finance executives cooked the books.

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Business Digest