U.S. accuses Nymex chairmanFederal regulators have accused...

BUSINESS DIGEST

February 18, 1993

U.S. accuses Nymex chairman

Federal regulators have accused the chairman of the New York Mercantile Exchange and two others of commodity law violations. The New York Mercantile Exchange, or Nymex, is the world's biggest market for oil and gasoline futures.

In an administrative complaint yesterday, the Commodity Futures Trading Commission accused Z. Lou Guttman; his former partner, Harold Magid, and another man, Gary Glass, of Merrick, N.Y., of noncompetitive, prearranged trading in options on sugar futures.

Regan ignored warning on S&Ls

Former Treasury Secretary Donald T. Regan said yesterday he paid little attention to warnings in 1984 by thrift regulator Edwin Gray that there was trouble in the savings and loan industry.

Mr. Regan explained that he didn't trust Mr. Gray, and that the politics of the 1984 presidential election did not allow President Ronald Reagan to renounce his policy of industry deregulation.

Hewlett-Packard posts profit

Hewlett-Packard Co. posted a $261 million profit for its latest quarter yesterday, compared with a loss the year before, and the computer company said orders surged 24 percent during the period. Wall Street greeted the news by pushing Hewlett-Packard stock up $4.625, to $72.25, in heavy New York Stock Exchange trading.

The company also said that by the end of the quarter, 1,700 employees had elected to leave under a voluntary severance program. It expects more departures as the job-cutting program spreads to new countries.

TWA, creditors file plan

Trans World Airlines Inc. and its unsecured creditors filed a joint reorganization plan in federal bankruptcy court that would eliminate $4 billion in claims against the airline. TWA's unsecured creditors would own 55 percent of its common stock and 100 percent of its preferred shares and new debt securities after the reorganization. The remaining common stock would be held by the airline's union employees in exchange for $220 million in annual wage and benefit concessions for three years.

United to sell flight kitchens

United Airlines put its 17 flight kitchens up for sale yesterday, a move that would cut an additional 5,800 workers from the airline's payroll. The action is in addition to a previously announced $400 million in cost-cutting that will eliminate 2,200 jobs at United and its parent, UAL Corp.

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