Subject: [NEXTEL-1] A Year of Scandals and Sorrow

From: Marcel <[email-masked]>
Date: Fri, 03 Jan 2003 13:12:05 -0500

January 2, 2003 5:37 p.m. EST

SPECIAL REPORT: YEAR-END REVIEW OF MARKETS & FINANCE

A Year of Scandals and Sorrow

The year began in the shadow of Sept. 11, 2001, and would soon cast shadows of its own. On
Wall Street, a parade of
corporate scandals put executives in handcuffs and led companies to restate billions on
their balance sheets. The SEC
made CEOs swear results were accurate. A succession of bankruptcy-court filings made
history. The stock market ended
lower for a third straight year. In politics, the Democrats lost Congress, and the
Republicans lost their Senate majority
leader.

Shadows fell across the international scene as well. The U.S. was spared another major
terrorist attack, but Indonesia,
Kenya, Russia and Pakistan weren't, and there was no end to Palestinian suicide bombs and
Israeli gunfire. Afghanistan
got a new government, but one vexed by warlords and al Qaeda. Daniel Pearl lost his life.
Osama bin Laden was
apparently still at large. The U.S. worked through the U.N. to seek Iraq's disarmament,
but as the year ended, the threat
of war still loomed, and North Korea flouted both the U.S. and the U.N. by rattling nukes.

Here is a summary of the news events as chronicled on the front page of The Wall Street
Journal. In most cases, the dates
reflect when the items were published.

-- Laura Saunders Egodigwe, John C. Long and Nima Warfield

• Jan.0 | Feb.0 | March0 | April0 | May0 | June0 | July0 | Aug.0 | Sept.0 | Oct.0 | Nov.0
| Dec.0

January

2: More than 300 million Europeans1 start 2002 with a new currency; the euro proves
popular on its first day of official
business.

The FDA rejects2 ImClone's application to market the cancer drug Erbitux, dealing a
setback to the biotech firm and its
partner, Bristol-Myers Squibb.

Argentina's political crisis3 yields the nation's fifth president in two weeks, Eduardo
Duhalde, a Peronist senator.

4: The investigation4 of Sen. Torricelli ends as prosecutors decline to file charges in
the long graft inquiry. A Senate inquiry
goes on.

An apparent anthrax hoax letter5 arrives in Senate Majority Leader Daschle's office.

7: Argentina says6 it is devaluing the peso by 29%, breaking the currency's decade-old
1-to-1 peg to the dollar in a risky
effort to shift the country out of a four-year recession.

The leaders of India and Pakistan7 meet and shake hands at a regional summit in Nepal as
war tensions between the two
nuclear-armed neighbors ease further.

Enron agrees8 to let Dynegy buy a pipeline unit that was a centerpiece of the companies'
failed merger deal.

9: Alcoa posts9 a quarterly loss for the first time in nearly a decade.

Died:10 Wendy's hamburger-chain founder Dave Thomas, of liver cancer, at age 69.

10: The Justice Department confirms11 it will pursue a criminal probe of Enron, focusing
on possible accounting fraud.

Merrill Lynch is taking12 a $2.2 billion charge, partly to pay for about 9,000 job cuts,
in one of the steepest retrenchments
on Wall Street in recent years.

11: Arthur Andersen says13 its employees destroyed many documents related to its work for
Enron. Attorney General
Ashcroft recuses himself from the Enron inquiry, citing a conflict of interest.

14: The president faints14, falls and hits his head after choking on a pretzel while
watching football on TV, suffering brief
oxygen deprivation and a cut on his cheek.

16: An Al Qaeda PC15 yields possibly solid evidence of links to the shoe bomber. The
computer, acquired in Afghanistan
by The Wall Street Journal, contains a file on the doings of a "brother Abdul Ra'uff" who
scouted targets in the Mideast.
His travels were strikingly similar to those of Richard Reid.

The U.S. charges16 American Taliban fighter John Walker Lindh with conspiracy to kill U.S.
citizens.

Arthur Andersen fires17 the partner who directed the destruction of thousands of e-mails
and documents related to the
Enron audit.

17: The shoe bomber18 is indicted as a terrorist who was trained by al Qaeda.

Enron's board fires19 Arthur Andersen as auditor amid a storm of recriminations between
the companies.

Kmart's president leaves20, and its chairman is replaced, as the company struggles to
stave off filing for bankruptcy
protection.

21: ImClone is being probed21 by congressional investigators amid recent setbacks at the
biotechnology company.

22: Three ex-Enron employees22 say documents were shredded in the accounting department of
the company's Houston
headquarters after federal investigators had begun an inquiry into possible illegalities
at the energy concern.

Willamette agrees23 to be acquired by Weyerhaeuser for $6.11 billion, or $55.50 a share.
Weyerhaeuser CEO Steven
Rogel's deal for Willamette, the helm of which he left in 1997 for Weyerhaeuser,
culminates a five-year quest to buy the
rival.

23: Kmart files24 for Chapter 11 after efforts to secure bailout funding fizzle and
outlines a plan to reduce its size and
emerge from court in 2003.

Tyco announces25 a plan to split into four separate firms focusing on electronics and
security, health care, fire protection
and financial services.

Amazon surprises26 Wall Street by posting its first-ever earnings.

Died:27 Stanley Marcus, 96, chairman emeritus of the luxury Neiman Marcus chain, Tuesday,
in Dallas.

24: Enron CEO Kenneth Lay28 resigns less than 24 hours after a bankruptcy-court-appointed
creditors committee seeks
his removal.

Stymied anthrax investigators29 double to $2.5 million the reward for information on the
source of the recent mail attacks.

Merrill Lynch reports30 a $1.26 billion quarterly loss, its first since 1998, citing a
restructuring charge and expenses related
to the terrorist attacks.

25: Former Enron Vice Chairman31 J. Clifford Baxter, who quit the energy firm in May, is
found dead, an apparent
suicide.

28: ImClone says32 the SEC and Justice Department have started inquiries into whether the
company misled investors
about prospects for a cancer drug.

29: Bush delivers33 his first formal State of the Union address, promising to defeat the
twin threats of terrorism and
recession. Iran, Iraq and North Korea constitute an "axis of evil," he says. Bush plays
down pro-business rhetoric. Without
mentioning Enron, he calls for greater protections for retirement plans and says corporate
America must be held to the
"highest standards of conduct."

Powell speaks34 to Pakistan's president to spur efforts to find and free The Wall Street
Journal's Daniel Pearl, abducted
while reporting on the region's conflicts.

Global Crossing files35 for Chapter 11 in the biggest telecom collapse so far. Global
Crossing's fall is blamed by telecom
executives and analysts on a confluence of factors, ranging from aggressive accounting to
a "turnstile" of CEOs.

30: IBM names36 Samuel Palmisano, the company's president, to succeed Louis Gerstner as
chief executive March 1.

31: The Roman Catholic Church in Ireland agrees to pay $110 million into a compensation
fund for children sexually
abused by clerics over the years; with an estimated 3,000 victims, critics say, the
contribution is insufficient.

February

1: The sole U.S. anthrax-vaccine maker37 wins approval to resume shipments after years of
concern over production
quality.

Disney will no longer buy38 consulting services from the same firm that audits its books,
a challenge to the accounting
industry's belief that a single firm can handle both roles objectively.

4: An internal Enron report39 finds various improper financial transactions and massive
self-dealing by company officials.
Enron ex-Chairman Kenneth Lay and two other former top executives back out of testifying
on Capitol Hill, where
congressional hearings will probe Enron's failure.

Tyco discloses40 it spent about $8 billion in its past three fiscal years on more than 700
acquisitions that were never
publicly announced.

Delta's flight attendants41 reject a move to unionize, in a big win for the carrier.

The New England Patriots42 won football's Super Bowl on Sunday, defeating the St. Louis
Rams 20-17 in a game played
under heavy security.

5: Bush announces43 his $2.13 trillion budget as he is cheered by troops in Florida. The
military is the big winner in the
fiscal 2003 spending plan, receiving a 14% increase to $379 billion for everything from
pay raises to new weapons.

Kenneth Lay says44 he is quitting Enron's board, and lawmakers say they will subpoena him
to appear before investigative
panels.

6: The Nikkei 225 Stock Average45 falls to an 18-year low, and S&P downgrades the credit
ratings of seven Japanese
banks.

7: Allied Irish Banks says46 a rogue trader at its U.S. unit incurred losses of $750
million through unauthorized trading.

8: Bush rejects47 granting prisoner-of-war status to detainees from Afghanistan.

Enron's former CEO48 denies knowledge of improper activities by his subordinates and of
many of the details of the
partnerships that brought the company down, in testimony before Congress.

Arafat names two aides he said should eventually take over the Palestinian Authority and
PLO, his first hint at a possible
successor. They are Ahmed Qureia, the parliament speaker, and Mahmoud Abbas of the PLO.

WorldCom's CEO49 says the company stepped in to cover a personal loan of $198.7 million.
The long-distance firm cut
its 2002 forecasts and said it expects a charge of $15 billion to $20 billion.

11: "Let's roll,"50 Bush tells U.S. athletes in a pep talk before Friday's opening of the
Salt Lake City Olympics.

An ex-Lehman broker51, Frank Gruttadauria, under investigation over whether he bilked
clients out of as much as $300
million, turned himself in to authorities over the weekend after being on the lam for four
weeks.

Died:52 Princess Margaret, 71, sister of Britain's Queen Elizabeth II, in London,
Saturday, of a stroke.

12: Nortel's finance chief53 quits as the company discloses that he had sold an investment
in the firm before it released
news of worse-than-expected losses last year.

Died: Victor Posner, 83, prominent 1980s corporate raider convicted of securities-law
violations in 1994, in Miami, of
pneumonia.

13: Enron's former chairman54 invokes the Fifth Amendment, declining to answer any
questions from a Senate panel.
Separately, remarks by Kenneth Lay55 to an investigative committee in January indicate
that on at least two occasions he
may have deliberately misled the public in order to keep the firm's problems from becoming
known. Enron announces the
planned resignations of six board members, including four who served on its audit panel.

15: A Pakistani militant56 arrested this week admits abducting Daniel Pearl of The Wall
Street Journal. Officials dismiss his
claim that the reporter is dead.

20: CSFB fines57 two executives and a top broker $500,000 apiece in the aftermath of a
regulatory probe of alleged
abuses in how the firm handed out hot IPOs.

21: A blaze aboard58 an Egyptian train kills at least 370 people in the country's worst
rail disaster. The crowded train was
headed south from Cairo when it caught fire, forcing passengers to jump from speeding
cars. Investigators suspect gas
containers brought on board for cooking may have been the cause.

22: Daniel Pearl was killed59 by his captors, The Wall Street Journal and U.S. say. A
video obtained by Pakistani
investigators ends hopes of finding the 38-year-old reporter, abducted a month ago, alive.
The U.S. and Pakistan vow to
find and punish the killers.

The head of the CDC60, Jeffrey Koplan, resigns effective March 31. He gives no reason, but
the federal health agency had
come under severe criticism for its handling of last year's anthrax attacks.

25: Cheney is sued61 by the GAO, which seeks a list of executives he met with while
crafting Bush's energy plan.

26: GM raises62 its earnings outlook and production plans for the year amid a
stronger-than-expected U.S. performance.

27: The Lyme disease vaccine63 is pulled off the market by its only U.S. manufacturer,
which cites a lack of demand. The
move comes despite a recent government report that the disease is surging in the
Northeast.

A Georgia crematory owner64 is hit with 100 more criminal charges for stacking hundreds of
corpses on his property for
years instead of incinerating them as he was paid to do. The House votes to make that a
felony.

March

1: Israel storms65 two Palestinian refugee camps on the West Bank in an unprecedented
operation that leaves at least 12
Palestinians and one Israeli soldier dead. Israel says militants are using the camps as
hideouts. The U.S. urges Israel to
show restraint.

A federal appeals court66 overturns the convictions of three white New York policemen in
the 1997 torture of Haitian
immigrant Abner Louima. The ruling didn't affect the main culprit, but still provokes an
outcry.

4: Northrop launches67 a formal $5.9 billion hostile bid for TRW just hours after the TRW
board rejects Northrop's
unsolicited offer as inadequate.

Arthur Andersen agrees68 to pay $217 million to settle all pending litigation related to
its audits of the Baptist Foundation
of Arizona, which filed for Chapter 11 after its collapse in 1999.

Afghan fighting reignites69, with the heaviest involvement by U.S. troops yet. Hundreds of
American soldiers join 500
Afghans in an assault on a cave complex outside Gardez where al Qaeda and Taliban fighters
are believed to have
regrouped.

6: Bush imposes70 sweeping tariffs and quotas on a wide range of steel imports for three
years. The move, which targets
steel produced by the EU, Japan and South Korea, is likely to sustain U.S. firms that
otherwise would have failed and
weaken incentives for industrywide consolidation. Foreign governments and steelmakers
threaten countermeasures and
legal action.

Sept. 11 fund guidelines71 are to be revised, reportedly to boost payouts to families of
victims and eliminate the deductions
for Social Security and workers' compensation benefits. The original rules were roundly
reviled.

7: California Republican primary voters72 pick political novice Bill Simon to challenge
Gov. Davis in fall elections.
Democratic Rep. Gary Condit is shown the door, still trailed by suspicions about the
disappearance of intern Chandra
Levy.

National Steel files73 for bankruptcy-court protection, saying its problems wouldn't be
offset by industry aid.

The FTC approves74 H-P's proposed $22 billion acquisition of Compaq.

8: Schering-Plough plans75 to turn Claritin, its huge-selling prescription antihistamine,
into an over-the-counter drug
available in just about any store.

Conseco's CEO76 discloses that he fired his chief financial officer. The statement comes
amid a two-day slide in the
company's stock price.

Harvard Business Review's editor77 quits, but strikes a deal in which she will be back as
editor at large. Suzy Wetlaufer is
caught up in a flap over her relationship with GE's former chairman.

11: Bush marks78 a post-Sept. 11 milepost by outlining the war on terror's next steps. New
York turns on powerful
spotlights that create columns of light to memorialize the twin towers in the void their
destruction tore in the skyline.

12: Qwest and WorldCom79 say the SEC has launched inquiries into their accounting
practices.

Kmart accepts80 the resignation of CEO Charles Conaway, who led the retailer into Chapter
11, and hands the title to
Chairman James Adamson.

13: A Florida flight school81 Monday receives student-visa paperwork for two Sept. 11
hijackers. The INS says the
formal notices of decisions made last summer just reflected the slow grinding of the
bureaucratic wheel. Bush says he was
"plenty hot" to learn about it and wants an INS overhaul.

Andrea Yates is found guilty82 of murder by a Texas jury that rejects her claims of
postpartum insanity in the slayings of
her five children at their Houston home last year. A few days later, the jury sentences
her to life in prison.

The U.S. homeland-security chief83 announces a color-coding system to identify
terrorist-threat levels.

The Archdiocese of Boston84 agrees to pay up to $30 million to settle suits by dozens who
say they were abused as
children by former priest John Geoghan.

15: Andersen is charged85 by the Justice Department with obstruction of justice over the
destruction of documents related
to its Enron audit. Andersen loses some 40 clients in the wake of the Enron collapse. Lost
clients include Merck, Freddie
Mac and Delta Air Lines.

Delta Air Lines says86 it has eliminated most of the commissions it pays to travel agents
in the U.S. and Canada, making it
the first major carrier to do so. Continental and American later join the carrier. Travel
agents begin mobilizing in response.

19: Operation Anaconda ends87. The Pentagon pronounces the battle outside Gardez,
Afghanistan, an "absolute success."

Donald Trump88 and a partner agree to sell the Empire State Building to its long-term
leaseholder for $57.5 million.

20: Hewlett-Packard claims89 a narrow victory in its fight to win shareholder approval for
its $21.4 billion acquisition of
Compaq. But dissident director Walter Hewlett, who opposed the deal, says the outcome was
too close to call and
refuses to concede defeat until the votes of H-P shareholders are officially tallied.
Compaq stockholders later endorse the
company's sale to H-P by a 9-to-1 margin.

22: Andersen Worldwide begins90 to crack, as partners in Hong Kong, China and Russia agree
to merge with rival firms,
dashing efforts to forge a deal for the firm's non-U.S. operations.

Pope John Paul II breaks91 his silence on sex-abuse scandals rocking the Catholic Church
in the U.S., Ireland, England,
France, Australia and Poland. The pontiff says they have cast a "dark cloud of suspicion"
on all priests.

25: Paul Volcker offers92 to take control of Arthur Andersen and oust top management. In
February, Andersen names the
former Fed Chairman to head a reform panel, but by May he acknowledges the end of his role
when the panel is
suspended.

PepsiCo and United Air93 sign a five-year accord making Pepsi the cola served on all
United flights, ending the carrier's
decades-long pact with Coke. Pepsi later wins a contract for sponsorship rights with the
NFL, the top TV sport, in
another setback for Coca-Cola.

Maryland Public Television94 pulls the plug on Louis Rukeyser, host of "Wall $treet Week,"
after he publicly criticizes
plans to replace him after 32 years.

26: Shell agrees95 to acquire Pennzoil-Quaker State for $1.8 billion, a move that would
give the firm a motor-oil brand
and network of oil-change centers to go with its chain of gas stations.

A Nigerian Muslim court overturns the sentence of death by stoning handed out to a woman
convicted of adultery. The
case had drawn international attention to the imposition of the strict Shariah legal
system in some regions of Nigeria.

27: Andersen's CEO resigns96, even as the accounting firm proceeds with talks to sell its
nonaudit businesses in the U.S.
for over $1 billion. Joseph Berardino had come under increasing criticism from partners
who believed he mishandled the
fallout from Andersen's botched audits of Enron.

BAE's CEO resigns97 unexpectedly, prompting speculation about the future of Europe's
largest defense contractor.

28: A suicide bomber kills98 20 in Israel, shattering hopes for a cease-fire. The Hamas
bomber blew himself up in a
Netanya hotel ballroom crowded with Passover diners. More than 120 are wounded. Aides to
Arafat condemn the attack,
but Israel says that it holds the Palestinian leader responsible and that it would have to
reassess agreements it has made so
far in U.S.-led truce talks.

29: U.S. smallpox-vaccine stocks99 expand suddenly as French firm Aventis Pasteur
discovers as many as 90 million
doses at its plant in Pennsylvania.

April

1: Israel is at war100, Sharon declares amid a rain of suicide bombings and
counterstrikes. The prime minister, speaking on
a day when two attacks take 15 Israeli lives, vows an unrelenting offensive to smash
Palestinian militants.

Died:101 Britain's Queen Mother Elizabeth, 101, Saturday, near London.

2: Xerox plans102 to restate earnings covering four years and pay a $10 million civil
penalty to settle SEC charges that it
engaged in fraudulent accounting practices. The fine would be the largest the agency has
levied against a public firm in
connection with financial-reporting violations.

3: The SEC is looking103 into accounting methods at some of the largest U.S. companies,
broadening the scope of its
inquiry beyond the issues in the Enron probe.

4: Microsoft President Rick Belluzzo104 is stepping down, a move some observers blame on
clashes with CEO Steve
Ballmer over strategy and management style.

5: Bush raises105 U.S. stakes in ending Mideast violence, stung by criticism of inaction.
"Enough is enough," the president
says in announcing Secretary of State Powell will go to the region. Bush calls on Israel
to withdraw from areas "occupied"
in its current offensive and blasts Arafat for suicide attacks. The U.N. Security Council
demands an Israeli pullout "without
delay." Israeli troops and tanks enter Nablus.

Four Pakistanis go on trial106 in Karachi for abduction and murder of The Wall Street
Journal's Daniel Pearl.

8: An amended Enron lawsuit107 alleges that more than three dozen new defendants,
including Merrill Lynch and J.P.
Morgan Chase, participated in a scheme with the company's top executives to defraud
investors.

9: The Andersen partner fired108 by the firm for shredding Enron audit documents has
agreed to plead guilty to obstruction
and cooperate with U.S. prosecutors. Separately, Andersen says109 it will eliminate about
7,000 jobs, or 27% of its work
force in the U.S.

Israel announces110 partial pullout from the West Bank after angry prodding by President
Bush. Battles continue to rage,
with about 100 Palestinians left dead in a Jenin refugee camp.

10: The SEC widens111 its probe of alleged accounting fraud at Xerox, telling two former
executives and KPMG, the
firm's former auditor, that it may file civil charges against them.

11: Andersen's British operations112 agree to join with Deloitte & Touche. A week earlier,
Andersen's Spanish operations
also agreed to merge with Deloitte.

15: Venezuela's Chavez113 returns to power following his ouster by the military last week.

16: GE will cut114 7,000 jobs this year in its GE Capital Services unit in an effort to
reduce costs and move more functions
to the Internet.

In Afghanistan115, four U.S. soldiers die when rockets they were disarming blow up near
Kandahar.

An Air China 767 jetliner116 crashes on approach to Pusan, South Korea, killing 129.

18: Ford reports117 its fourth-straight quarterly loss. But the auto maker joins GM in
saying it would boost production, a
sign that the industry is beginning to rebound.

H-P says shareholders118 approved its plan to buy Compaq, by a slim margin. Walter Hewlett
vows to continue
challenging the results.

TRW rejects119 Northrop's sweetened $6.68 billion hostile offer and puts itself up for
sale.

19: Andersen breaks off120 settlement talks with the Justice Department aimed at resolving
its criminal indictment amid
signs its discussions to settle civil litigation are unraveling.

22: Enron President Jeffrey McMahon121 is stepping down June 1 amid rising government
scrutiny of his role in some
questionable Enron-related deals.

23: The Treasury plans122 new federal money-laundering rules that will cover a broader
spectrum of the financial-services
industry. The rules will apply to credit-card companies, mutual funds, wire-transfer firms
and commodities dealers, as well
as to banks and securities firms.

Williams Communications123 files for Chapter 11. Ericsson warns it won't make a profit
this year, while Lucent sales
plunge 40%, in signs the telecom crash is worsening.

Alfred Taubman124 of Sotheby's is sentenced to a year and a day in jail and fined $7.5
million for his role in a price-fixing
scheme.

24: Exxon Mobil reports125 that its first-quarter profit tumbled 58% as lower oil and
natural-gas prices and lackluster
demand combined to create the worst business climate since the 1980s.

25: Suzy Wetlaufer quits126 the Harvard Business Review as her work continues to be
questioned following disclosures of
a romantic relationship with GE's ex-chairman.

Andersen lawyer127 Nancy Temple, a pivotal figure in the document-destruction case, is
under criminal investigation.

26: Tyco abandons128 its plan, announced in January, to split the conglomerate into four
parts. The company also lowers
its earnings forecast for the year and reports a $1.9 billion quarterly loss because of
technology write-downs. Shares
tumble 20% to a 52-week low of $20.75.

Dynegy says129 the SEC is investigating its accounting of natural-gas trading. The news
pushes the company's shares down
30%.

29: The economy roars130 out of recession in the first quarter, growing at a 5.8%
annualized pace, the fastest in two years.
But signs of fragility linger. Blue chips end the week down 3% at 9910.72, the first time
since February the Dow industrials
close below 10000, amid bad corporate news.

30: WorldCom's CEO quits131. Bernard Ebbers reaches his decision under pressure from
outside directors frustrated by
the company's sinking stock price, controversy over Ebbers's $366 million personal loan
from the firm, and the SEC's
investigation of the company.

Sotheby's ex-CEO132 Diana Brooks is sentenced to three years' probation instead of prison
for her role in a price-fixing
scheme.

May

1: H-P's plan133 to buy Compaq overcomes a final hurdle as a judge dismisses a lawsuit
from dissident shareholder Walter
Hewlett that sought to block the deal. After the decision, Hewlett said he would support
the $18.6 billion transaction.

2: Enron plans134 to reorganize itself as a small company under a new name. The mediator
in Andersen's settlement talks
with Enron creditors and shareholders declares the talks dead.

Israel pulls out135 of Ramallah, ending Arafat's confinement.

6: France's Chirac wins136 a second term as president in a landslide driven by distaste
for hard-right rival Le Pen.

7: Enron energy traders137 manipulated California's power system to bolster profits during
the height of the state's
2000-2001 energy crisis, documents released by federal regulators show. California
officials call for a new criminal inquiry.

8: The Fed leaves rates138 at a 40-year low and signals it will continue to be patient
about raising them, saying the risks of
economic weakness and inflation are equally balanced.

A Chinese MD-82 jetliner139 crashes into the bay near the northeastern city of Dalian,
killing all 112 on board. An
EgyptAir 737140 crashes in Tunisia, killing 14 of the 62 people aboard.

9: The Nasdaq surges141 7.8% to 1696.29, sparked by hints from Cisco about a possible
business rebound. The Dow
industrials jump 3.1% to 10141.83.

KPMG signs142 a letter of intent to buy nearly all of Andersen Worldwide's consulting
operation. The deal is the biggest so
far for a piece of Andersen.

10: Worldcom's debt143 is slashed to "junk" levels by Moody's and Fitch, as the telecom
firm's banks asked that it put up
collateral to secure $5 billion in credit lines.

IBM plans144 to lay off as many as 8,000 workers, or about 2.5% of its world-wide work
force, during the current
quarter.

13: Robert Hanssen is sentenced145 to life in prison Friday for spying for Moscow over two
decades while serving in the
FBI.

14: Sears agrees146 to buy Lands' End, the nation's largest mail-order and Internet
apparel retailer, in a $1.86 billion cash
deal.

Reliant says147 it engaged in bogus power trades during the past three years to make its
business appear bigger. The
company blames rogue traders.

The U.S. and Russia148 strike a deal to reduce nuclear arsenals. It will require warhead
cuts of about two-thirds by 2012,
but doesn't lay out a monitoring mechanism and says nothing about missile systems.

Bush signs149 the farm bill he initially opposed, boosting crop subsidies as well as
Republican candidates in agricultural
areas.

15: The Justice Department150 is investigating a group of the world's largest banks for
allegedly using their online trading
service to restrict competition in the foreign-currency market.

PPG agrees151 to pay $2.7 billion to resolve all of its asbestos litigation through
Pittsburgh Corning's bankruptcy
proceedings.

Revamped Iraq sanctions152 are approved by the U.N. Security Council in a victory for
Bush. A ban on arms sales will be
toughened while imports of civilian goods will be made easier. Washington hopes that will
help it build support for a drive
to oust Saddam Hussein.

16: CMS Energy says153 $4.4 billion of its electricity trading -- most of its volume for
2000 and 2001 -- resulted from
sham "round-trip" swaps with Dynegy and Reliant that had no economic value. Meanwhile, the
SEC is conducting a
sweeping probe154 across many industries into practices that pump up revenue.

Adelphia says155 its founder, John Rigas, has resigned and that it has launched a probe
amid new allegations involving the
Rigas family.

Bush was warned156 by U.S. intelligence weeks before the Sept. 11 attacks that Osama bin
Laden's terrorist network
might hijack American planes. The administration notified federal agencies of the threat,
but said it lacked specificity to
have prevented the tragic events.

17: Japan says157 it will join the EU in slapping tariffs on U.S. imports of steel, the
first time Tokyo has ever retaliated
against the U.S. in a trade impasse. Bush's decision in March to impose tariffs on steel
imports, coupled with this week's
approval of domestic farm subsidies, is spurring retaliation158 and anti-American trade
sentiment.

Adelphia is the subject159 of a probe by federal prosecutors into possible accounting
irregularities.

Reliant and CMS160 announce management shake-ups, following admissions that they had
engaged in bogus power deals.

20: Federal authorities161 are trying to determine whether Computer Associates wrongly
booked more than $500 million
in revenue in its 1998 and 1999 fiscal years in a scheme to enrich the firm's senior
managers.

Schering-Plough agrees162 to pay $500 million to resolve manufacturing problems, in the
largest penalty ever levied by the
FDA.

22: Merrill agrees163 to pay $100 million and change how it monitors its stock analysts in
settling the New York state
attorney general's inquiry into allegations that it misled individual investors about the
stock of its investment-banking clients.

Citigroup agrees164 to buy Golden State for $5.8 billion in stock and cash, in a bid to
expand its West Coast
branch-banking presence.

23: ImClone CEO165 Samuel Waksal resigns. The biotech firm has been hurt by controversy
over its handling of a failed
application for its Erbitux cancer drug.

An Alabama jury166 convicts Bobby Frank Cherry of killing four black girls in the 1963
Birmingham church bombing. The
ex-Klansman faces life in prison.

Chandra Levy's remains167 are discovered in Washington, D.C. The intern had gone missing
after an affair with Rep. Gary
Condit.

24: J.P. Morgan Chase announces168 a management shake-up in the aftermath of a series of
financial-industry setbacks.

Died:169 "Slammin' Sam" Snead, 89, golfing legend who won seven major championships, in
Hot Springs, Va.

28: CMS's chief resigns170 following disclosures the energy firm's trading unit had
conducted transactions that artificially
boosted volumes and revenue.

Taiwan searches171 for clues to what caused a China Airlines jet to break apart on
Saturday and crash into the Taiwan
Strait with 225 passengers and crew on board.

Mozambique establishes172 a commission to investigate what caused a train crash on
Saturday that killed about 200
people and injured hundreds. It was the worst rail disaster in the country's history.

29: Dynegy's chief resigns173 under pressure from the company's board. Chuck Watson's
departure comes amid mounting
questions about some of the energy concern's financial practices. Glenn Tilton, who joined
the board last year as a
representative of ChevronTexaco, was named interim chairman. Daniel Dienstbier, a longtime
director, was appointed
interim CEO.

SBC agrees174 to pay a record $3.6 million for submitting false data to regulators
weighing the firm's long-distance
applications.

Halliburton says175 the SEC launched a preliminary inquiry into its accounting treatment
of cost overruns on construction
jobs.

Bush signs176 a historic accord that gives Russia a voice, but no veto, in NATO. Later,
the EU says it will formally
recognize Russia as a market economy.

30: Philip Morris agrees177 to sell its Miller unit to South African Breweries in a $3.6
billion stock accord that would let
the U.S. firm retain a stake in the beer maker.

Nortel Networks announces178 plans to cut 3,500 more jobs, or about 8% of its work force,
and take charges of $600
million.

31: Analyst Jack Grubman179 was instrumental in making management and business decisions
at Global Crossing for two
years after the firm went public in August 1998. The activities of the Salomon telecom
analyst may lend support to New
York state Attorney General Eliot Spitzer's probe into conflicts of interest among
research analysts.

The FBI is given180 broad new powers on domestic spying. Agents now will be allowed to
conduct surveillance of public
gatherings and surf the Internet as part of terrorism investigations.

Born:181 Adam D. Pearl, son of the late Wall Street Journal correspondent Daniel Pearl and
his wife, Mariane, in Paris.

June

3: The SEC authorizes182 investigators to probe the stock sales of Global Crossing's top
executives.

4: Tyco announces183 the resignation of CEO Dennis Kozlowski.

Microsoft agrees184 to settle SEC civil allegations that the company misstated its
earnings during certain periods of the
1990s.

El Paso executive185 C. Dana Rice is found dead in an apparent suicide, further rattling
an energy industry facing growing
scrutiny.

Napster files186 for bankruptcy protection as a prelude to a proposed sale of the Internet
music service's assets to
Bertelsmann.

5: Bristol-Myers is being sued187 by state attorneys general, who claim it illegally
delayed generic competition to its Taxol
cancer drug.

6: New York prosecutors188 are looking into whether former Tyco's ex-CEO Dennis Kozlowski
improperly used
company funds to buy his $18 million New York apartment and whether he received
interest-free loans from the company
to purchase artwork.

Currency trader John Rusnak189 is indicted on fraud charges in the Allfirst Financial
scandal.

Israel moves190 against Arafat after a bombing kills at least 16 and wounds dozens of
others. In response, Israeli tanks
enter the Palestinian leader's Ramallah compound and open fire.

7: Adelphia inflated191 the number of cable-TV subscribers by 400,000 to 500,000 and kept
two sets of books to boost
the amount it spent to upgrade its systems.

R.J. Reynolds is ordered192 to pay a $20 million fine after a judge rules it "indirectly
targeted" youths in cigarette ads.

10: Adelphia's board dismisses193 auditor Deloitte & Touche, blaming it for not informing
the cable company about
questionable accounting and self-dealing.

Instinet plans194 to buy Island ECN for about $500 million in stock, combining the
Nasdaq's two biggest electronic-trading
rivals.

12: Bertelsmann is buying195 the stake in Zomba Music that it doesn't already own for
about $3 billion, under a
longstanding option being exercised by Zomba's majority owner. The deal comes as the music
industry faces its biggest
downturn in years.

13: Imclone's former CEO196 is arrested on charges of trying to sell ImClone stock and
tipping off family members after
learning that regulators would soon reject his company's cancer drug. Samuel Waksal's
arrest creates doubts as to whether
Bristol will maintain its current relationship with ImClone.

The SEC reopens197 a probe of Tyco as part of a broader review of possibly questionable
corporate accounting in the
aftermath of the Enron meltdown. Separately, Tyco receives198 SEC clearance for a CIT
share offer, but is forced to take
a $4.5 billion charge to reflect the unit's impaired value, after which Tyco shares surge
36% on news of the clearance.

14: Heinz says199 it is spinning off its most sluggish businesses, which will become part
of a new unit that will merge with
Del Monte.

17: Andersen is convicted200 of one felony count of obstructing the SEC's investigation
into Enron's collapse. The verdict,
which the accounting firm plans to appeal, gives the Justice Department a badly needed
boost in momentum as it pursues
indictments for more-serious crimes at the energy trader.

Qwest CEO Joseph Nacchio201 resigns at the request of the board, which has become
frustrated with the telecom
company's woes. Tellabs CEO Richard Notebaert will step in.

18: Nestle is buying202 a controlling 67% stake in Dreyer's in a bid to compete with
Unilever in the U.S. market for
premium ice cream.

Enron discloses203 it made $745 million of payments and stock awards to executives in the
year prior to its
bankruptcy-law filing.

19: A Senate panel approves204 legislation creating an accounting-oversight board to set
bookkeeping standards, limit
consulting work and discipline wayward auditors.

Microsoft says205 it would restore support for Sun's rival Java software in Windows,
offering a concession on the eve of
closing arguments at its antitrust trial.

20: The IRS is bringing back206 its controversial practice of randomly auditing individual
tax returns in an effort to crack
down on what it says is a growing wave of tax scams. IRS officials say the agency plans to
conduct about 50,000 random
audits related to the 2001 tax year.

The Justice Department207 launches a criminal inquiry into whether the top memory-chip
makers colluded to prop up
prices.

TRW agrees208 to sell its aeronautical-systems unit to Goodrich for $1.5 billion, a deal
aimed at thwarting Northrop's bid
for TRW.

24: Three former top Rite Aid executives209 are charged with masterminding an illegal
accounting scheme that triggered
the largest corporate-earnings restatement in U.S. history.

A Merrill Lynch sales assistant's statements210 about a controversial trade of ImClone
stock for Martha Stewart contradict
what the home-design maven and her broker said about the sale.

Died:211 Ann Landers, pen name for advice columnist Esther Lederer, 83, Saturday, in
Chicago, of cancer.

26: WorldCom's audit panel212 uncovers what could be one of the largest accounting frauds
ever, with the discovery of
$3.8 billion in expenses improperly booked as capital expenditures. Without the transfers,
WorldCom would have
reported a loss for 2001 and the first quarter of 2002. The company fires its longtime
chief financial officer, Scott Sullivan.

Adelphia files213 for bankruptcy-court protection amid probes into some of the largest
self-dealing in U.S. corporate
history.

Northrop offers214 to raise its bid for TRW to about $7.2 billion in an effort to fend off
rivals.

27: The Fed refuses215 to cut interest rates or even to signal that the central bank was
weighing such a move soon, despite
a crisis of confidence intensified by the WorldCom scandal.

The SEC files216 a civil suit alleging WorldCom engaged in a fraudulent scheme to pad
earnings.

Former Tyco chief217 L. Dennis Kozlowski is charged with two new felony counts of
tampering with evidence in
connection with an alleged tax-evasion scheme.

28: A new Xerox audit218 finds that the company improperly accelerated far more revenue
during the past five years than
the SEC estimated in an April settlement. The total amount of improperly recorded revenue
from 1997 through 2001 could
be more than $6 billion.

Motorola plans219 to cut 7,000 more jobs and take $3.5 billion in charges, largely related
to the restructuring of its
chip-making unit.

July

1: Northrop plans220 to buy TRW for $7.56 billion in stock, a sweetened deal that makes
Northrop the No. 2 military
contractor and ends a four-month standoff.

Xerox overstated221 its pretax income by 36%, or $1.41 billion, in the past five years,
showing bookkeeping misdeeds
more severe than the SEC estimated.

2: Jean-Marie Messier resigns222 after French directors agreed with their North American
counterparts that the Vivendi
chief had become the problem. A few days later, Vivendi board chooses223 Jean-Rene Fourtou
as the conglomerate's new
chief.

The Nasdaq starts224 the quarter by skidding 4% and stands just a tad above 1400, a
five-year low. Blue chips fall
1.44%.

Two big jets collide225 over southern Germany, killing 71, including a large group of
Russian students flying to Spain for
vacation.

The Pentagon dispatches226 a team to investigate claims that a wedding came under attack
in the village of Kakarak, north
of Kandahar. A week later, the Pentagon issues227 a statement acknowledging a U.S.
airstrike killed an undetermined
number of Afghan civilians.

3: Prosecutors secure228 Cynthia Cooper, the internal auditor who uncovered WorldCom's
alleged accounting fraud. Her
account of events is said to conflict with that of WorldCom.

A day after229 Nasdaq's dive, the S&P 500 follows suit, falling over 2% to a four-year
low. The Nasdaq slides 3.28%.

5: The Justice Department begins230 a criminal probe into Qwest, the latest blow for a
telecom firm struggling with $26.6
billion in debt and steep declines in local and long-distance businesses.

A nation trying231 to put Independence Day anxiety aside is jolted by TV bulletins of
shootings at the El Al counter at Los
Angeles airport. Three died, including the gunman. Officials rush to say the incident
doesn't look like terrorism. Soon after,
a small plane crashes among picnickers at a Los Angeles-area park, killing three. Again,
terrorism isn't suspected.

9: The president is forced232 to defend his SEC chairman, as calls for Pitt's ouster grow,
and is questioned closely about
his own business dealings while a director of Harken Energy. Bush dismisses as "recycled
stuff" questions about a 1990
stock sale he made just before the company reported a loss.

10: Merck postpones233 its Medco IPO but says it hopes to complete the separation of the
pharmacy-benefits unit within
12 months.

11: Cheney and Halliburton234 are sued by a legal watchdog group on behalf of
shareholders. Judicial Watch alleges
fraudulent accounting practices occurred when the vice president ran the oil-services
firm.

12: Bristol-Myers confirms235 the SEC is probing whether the drug maker improperly
inflated revenue last year by up to
$1 billion.

15: Pfizer agrees236 to buy Pharmacia for $60 billion, giving the world's biggest drug
company full rights to the arthritis
treatment Celebrex.

Coke will begin237 to treat stock options as an expense, which may prompt other businesses
to debate adopting the
practice.

Fannie Mae and Freddie Mac238 agree for the first time to submit to securities regulators'
scrutiny, in a bid to silence
critics.

FleetBoston decides239 to shut its Robertson Stephens investment bank, after negotiations
with a management-led team
hoping to buy the firm failed.

A Pakistani judge convicts240 four men of kidnapping and killing Wall Street Journal
reporter Daniel Pearl.

16: John Walker Lindh pleads241 guilty under a surprise deal. In the plea bargain approved
by Bush, the so-called
American Taliban agrees to serve 20 years in prison for fighting in Afghanistan.

17: Ron Sommer steps down242 as CEO of Deutsche Telekom, yielding to pressure from German
leaders who wanted
the executive out before national elections.

Intel misses243 Wall Street estimates for second-quarter earnings and says it will cut its
work force by 4,000, or about 5%.

Bush unveils244 his national strategy for homeland security. The proposal calls for a
systematic inventory of the nation's
critical infrastructure and a secret plan to protect such sites from terrorist attack. The
plan to create a cabinet-level
department is unnerving many cabinet officials and agency heads, who are seeing their turf
eroded.

18: Salomon regularly245 doled out shares of hot IPOs to CEOs in a bid to win
investment-banking business, a lawsuit
alleges.

Ford reports246 its first profit in a year, but the company said it must improve on the
slow progress of its cost-cutting
efforts.

AT&T names247 President David Dorman as chairman and CEO-designate in another step toward
completing its
restructuring.

19: AOL Time Warner puts248 two veterans from the old-media side in charge of day-to-day
operations as Robert
Pittman resigns. Questions about revenue recognition hurt the firm's stock price.

22: The Dow industrials saw249 their worst two-week drop since the 1987 crash, falling
390.23 points to 8019.26 on
Friday. That day's volume of 2.63 billion shares traded was the biggest ever on the Big
Board. More than $1.41 trillion in
value has been erased from U.S. stocks in those weeks as measured by the Wilshire 5000.

WorldCom files250 for Chapter 11 in the largest bankruptcy case in U.S. history. The firm
plans to restructure its $41
billion in debt, sell nonessential assets and focus on key businesses.

The industrial average slides251 2.93% to 7784.58, its lowest level since October 1998, in
the fourth-heaviest trading day
ever on the Big Board. The S&P 500 plunges 3.29% to 819.85, while the Nasdaq composite
closes down 2.77% at
1282.65.

23: An Israeli air force F-16252 fires a missile at a Gaza City house, slaying the top
commander of Hamas's military wing.
The F-16's bomb also leaves 14 civilians dead, nine of them children, enraging
Palestinians. At least 145 Palestinians were
injured in the strike. The White House chastises Israel for the high civilian toll,
calling the operation "heavy-handed."

24: Dynegy shares plunge253 64% after the energy-trading company cancels a bond offering
and slashes its 2002
cash-flow forecast. S&P cuts Williams Cos.' debt rating to junk status, citing the energy
concern's liquidity problems and
tumbling share price.

The industrial average falls254 1.06% to 7702.34 in late selling. The Nasdaq plunges 4.18%
to 1229.05, its biggest
one-day loss of the year.

25: The industrial average surges255 488.95 points, or 6.4%, its biggest one-day
percentage rally since the aftermath of the
crash of 1987. Big Board volume is 2.77 billion shares, a record.

Hershey's controlling trust256 is exploring a sale of the candy and chocolate maker, in an
auction that could fetch about $11
billion.

Adelphia founder John Rigas257 and two of his sons are arrested and charged with looting
the cable-television company.

The House expels258 Rep. Traficant, 420-1, over his bribery and racketeering conviction.
The Ohio Democrat is only the
second member to be ejected since the Civil War. Rep. Condit casts the lone vote of "nay."

26: Taiwan Semiconductor issues259 a bearish second-half outlook, causing many U.S. tech
stocks to plunge. The firm is
cutting spending due to weak chip demand.

Tyco names260 Motorola President Edward Breen as its new chairman and CEO. Motorola
chooses Mike Zafirovski to
succeed him.

Microsoft says261 it plans to spend heavily on new initiatives this fiscal year and hire
about 5,000 employees, a 10%
increase in staff.

29: Bertelsmann CEO262 Thomas Middelhoff quits the German company under pressure from
controlling shareholders.

GE Chairman263 Jeffrey R. Immelt is dividing GE Capital into four separate businesses. The
restructuring will give him
greater control amid pressure to simplify financial disclosure.

Qwest says264 it expects to restate financial results for 2000 and 2001 and to withdraw
previously reduced financial
projections for 2002.

Nine Pennsylvania miners265 are rescued after being trapped in a flooded coal shaft for 77
hours. The men tied themselves
together, deciding to live or die as a group, as drillers worked through the weekend to
reach them.

Lance Armstrong won266 bicycling's Tour de France Sunday for the fourth year in a row, a
record for an American.

30: The industrial average surges267 447.49 points, or 5.41%, to 8711.88, capping the most
powerful four-day rally since
1933. Despite the gains, the Dow Jones industrials are down almost 26% from their record
high of 11723 in January
2000, and few investors are prepared to say that the bear market is over.

31: IBM agrees268 to pay $3.5 billion in cash and stock for the consulting arm of
PricewaterhouseCoopers. The purchase
would extend the reach of IBM's computer-services operation, which is already the world's
largest and IBM's biggest
business.

Bush signs269 a bill to fight corporate fraud. At an elaborate ceremony to give his
approval to legislation he initially resisted,
the president promises "no more easy money for corporate criminals, just hard time."

Sen. Torricelli270 (D., N.J.) is admonished by the Senate Ethics panel for taking gifts
from a campaign donor.

August

1: A bomb explodes271 in a Hebrew University cafeteria in Israel, killing five Americans
and four Israelis. Hamas claims
responsibility, and Israeli forces later in the month arrest five people for suspected
involvement.

Williams Cos.272 reaches preliminary pacts for about $2 billion in secured debt from its
banks and Berkshire Hathaway,
and discloses plans to sell more than $1 billion in assets.

GE says it will treat273 employee stock options as an expense, making it one of the
largest companies to adopt the
accounting practice, although it soon expresses concern274 about valuing them correctly.
Other big companies to follow
suit include Procter & Gamble275 and AIG276.

2: The Senate277, 64-34, passes the "fast track" trade-authority bill, giving President
Bush enhanced power to negotiate
trade deals.

Stanley Works drops278 its plan to reincorporate in Bermuda in response to mounting
pressure from Congress. The tool
maker's planned move had drawn criticism as a symbol of corporations' attempts to avoid
taxes.

Tyco says279 its chief financial officer will leave, a sign that new CEO Edward Breen is
starting to clean house at the
company.

8: The IMF agrees280 to provide Brazil with a $30 billion rescue package, a move aimed at
restoring investor confidence
and forestalling a possible debt default in advance of October presidential elections.

ImClone's Samuel Waksal281 is indicted for insider trading; he pleads not guilty. ImClone
soon files suit282 against its
founder and former CEO, alleging he deliberately impeded continuing probes of the biotech
firm.

9: WorldCom expects283 to expand its planned financial restatement to $7.2 billion from
$3.85 billion as a result of
additional accounting irregularities.

The Dow Jones industrials284 jump 3%, or 255.87 points, to 8712.02, capping a three-day
surge of 8%, the biggest since
1987.

12: US Airways files285 for bankruptcy-court protection, punctuating the impact of the
Sept. 11 attacks on the travel
industry. The move shields the nation's No. 7 airline from creditors as it works to
complete a restructuring plan.

13: American Airlines plans286 a sweeping overhaul and broad layoffs as it struggles to
stem losses. The carrier expects to
ground more jets and change the way it connects passengers -- a step entailing longer
waits at hub airports.

The Pentagon says287 a U.S. soldier died of wounds he received two weeks earlier in
Afghanistan in an attack against the
country's army on the outskirts of Kabul, reportedly led by Pakistani members of al Qaeda
who had just escaped
detention in the capital.

14: The Federal Reserve leaves288 its target for short-term rates unchanged at 1.75%. The
Dow Jones industrials fall
2.4%, or 206.50, to 8482.39 amid investor disappointment, and bonds rally, pushing
Treasury yields to their lowest level
since the 1960s.

Amtrak is forced289 to suspend most high-speed Acela service after cracks were found in
locomotive wheel brackets.
Shortly thereafter, the rail carrier halts290 all Acela trains on the discovery of more
problems with the antisway brackets.
The move cuts total service on the busy Northeast corridor by about a third.

15: Top executives291 from hundreds of companies scrambled to meet an Aug. 14 SEC deadline
to swear that their
financial results are accurate. But several companies identify accounting problems, and
Enron officials aren't able to certify
results for 2000 or the first three quarters of 2001.

Conseco reports292 a huge loss after a $2.95 billion goodwill write-down, effectively
eliminating most of the firm's
shareholder equity.

16: Jack Grubman resigns293 from Salomon Smith Barney. The telecommunications analyst had
faced mounting pressure
from regulators, who say he hyped stocks to help the firm win investment-banking deals.
The move comes as Salomon
faces an NASD inquiry into whether it directed shares of hot initial public offerings into
clients' personal-brokerage
accounts at below-market prices. Salomon later acknowledges294 that it directed thousands
of shares of hot IPOs to
executives of WorldCom. Nearly one million shares of those IPOs went to Bernard Ebbers,
WorldCom's ex-CEO,
documents show295.

20: Qwest agrees296 to sell its yellow-pages business to a consortium led by Carlyle Group
and Welsh Carson for more
than $7 billion.

21: The SEC formally concludes297 that telecom companies acted improperly in booking
revenue from capacity swaps
with other firms.

22: Former Enron executive Michael Kopper298 names Andrew Fastow, Enron's ousted chief
financial officer, as an
unindicted co-conspirator as he pleads guilty to money laundering and fraud. The former
aide to Fastow was a key player
in several off-balance-sheet partnerships. His plea agreement is the first by an ex-Enron
executive.

Martha Stewart is sued299 by a shareholder, who claims Stewart sold company shares on
knowledge of an insider-trading
probe.

David Westerfield300, 50, is convicted of kidnapping and killing his 7-year-old neighbor,
Danielle van Dam. The San
Diego case was the first in a series of high-profile child abductions during the year. In
September, the trial jury
recommends the death penalty, but a delay pushes sentencing into 2003.

23: Salomon Smith Barney301 is being investigated by New York's attorney general over how
the securities firm won a
lucrative deal from AT&T and what role Citigroup CEO Sanford Weill may have played.
Salomon was picked as lead
underwriter for the April 2000 stock offering only after telecom analyst Jack Grubman
upgraded his rating on AT&T to a
"buy."

28: The SEC approves302 rules requiring top executives of U.S. and foreign companies,
including mutual-fund firms, to
certify results they file with the agency.

29: Prosecutors win303 an indictment against Scott Sullivan, WorldCom's former top finance
executive, accusing him of
orchestrating the telecom firm's $7.2 billion fraud. The federal grand jury also indicts
Buford "Buddy" Yates, a midlevel
accounting official. The two are charged with securities fraud and making false filings to
the SEC.

Grand juries charge304 six men with plotting to aid al Qaeda. In Seattle, American Muslim
activist James Ujaama is
accused of trying to set up a "jihad training camp." Five men who had been in the U.S.
since 2000 are indicted in Detroit
for allegedly running a "sleeper cell" for a group allied with al Qaeda.

30: Kennedy cousin305 Michael Skakel is sentenced to 20 years to life in prison for the
1975 murder of Connecticut
neighbor Martha Moxley.

September

3: UAL's board names306 oil-industry veteran Glenn F. Tilton as chairman, CEO and
president.

Died:307 Lionel Hampton, 94, vibraphonist who served as a beloved jazz ambassador, in New
York.

4: Stocks plunge world-wide308, hurt by weak manufacturing figures in the U.S. and Europe
and talk of more problems
among Japanese banks. The Dow Jones industrials slide 355.45 points, or 4.1%, to 8308.05,
their second-sharpest drop
of the year. In Tokyo, stocks tumble 3.2% to a 19-year low. The yield on the 10-year
Treasury falls below 4% for the first
time in nearly 40 years.

5: Credit Suisse First Boston's Frank Quattrone309 pushed for greater IPO allocations for
investment-banking clients,
according to e-mail records and people familiar with the firm. The allegations against the
star technology-industry
investment banker thrust Credit Suisse Group's CSFB into the spotlight of regulatory
scrutiny regarding IPO-allocations
practices. It soon emerges that CSFB analysts felt pressured by the firm310 to avoid
writing negative reports on
investment-banking clients, according to evidence in a Massachusetts probe.

6: The Senate votes311 87-6 to let airline pilots carry guns. The House already had voted
in favor of the move.

9: Saudi Arabia won't open312 its most promising natural-gas fields to Western oil firms,
all but ending their plan to invest
$25 billion amid a historic reopening of the kingdom's petroleum sector. Riyadh-Washington
relations have been under
rising tension in the wake of the Sept. 11 attacks, Israeli-Palestinian violence and U.S.
talk of unseating Saddam Hussein.

Citigroup ousts313 Michael Carpenter as head of its global corporate and investment bank
amid allegations of questionable
practices at its Salomon unit.

Pete Sampras beat314 Andre Agassi over the weekend in four sets to win the U.S. Open, his
14th major tennis title.
Among women, Serena Williams won over sister Venus in straight sets.

11: Qwest withdraws315 applications to provide long-distance telephone service to
customers in nine states. The Baby
Bell faced almost certain rejection by the FCC due to concerns about the company's
accounting scandal. Qwest says it
plans to refile the applications after updating the financial statements of its
long-distance affiliate and putting new controls in
place.

WorldCom's board316 plans a search for a new CEO; John Sidgmore has said he wants to
relinquish the role.

12: The U.S. marks317 the one-year anniversary of the Sept. 11 terrorist attacks. Bush
visits all three sites of the attacks;
the reading of names of those lost at the World Trade Center takes 2½ hours.

Died:318 Johnny Unitas, 69, quarterback who shattered records and won three championships
for the Baltimore Colts in a
long career ending in 1973, in Baltimore of a heart attack.

13: Tyco's former CEO319 and ex-finance chief are charged with stealing over $170 million.
Prosecutors accuse Dennis
Kozlowski and Mark Swartz of running a "criminal enterprise" aimed at defrauding
investors, saying the executives
siphoned off company funds for their own use. Mark Belnick, the former general counsel, is
charged with falsifying
business records.

Bush challenges320 the United Nations to act to enforce its resolutions on Iraq. Citing a
"grave and gathering danger," the
president commits himself to seeking international support while warning the U.S. will act
on its own against Saddam
Hussein if necessary.

16: Prosecutors are investigating321 alleged fraud by Enron in the manipulation of power
prices in three Western states
during the California electricity crisis. They are examining whether two former top
executives, Jeffrey Skilling and Greg
Whalley, were aware of the questionable trading practices or sought to conceal them.

Pakistani authorities322 say they caught the first member of a three-man execution team
that allegedly killed Wall Street
Journal reporter Daniel Pearl. The arrest comes in a recent sweep in Karachi that also
netted a Yemeni man who U.S.
investigators believe was a key plotter of the Sept. 11 attacks. Meanwhile, federal
authorities report323 the arrests of five
men from the Buffalo, N.Y., area who allegedly trained at an al Qaeda-run terrorist camp
in Afghanistan, and a sixth man
is soon reported to have been picked up in Bahrain.

18: Hershey is taken off324 the auction block just as the charitable trust that controls
it was close to wrapping up a sale to
Wrigley for $12.5 billion, a price far higher than had been expected. The push to sell the
nation's largest candy maker was
against the initial wishes of the company's senior management and prompted a firestorm of
protest.

19: WorldCom prepares325 a further revision of its financial results that could add about
$2 billion to the $7 billion in
accounting problems it has already disclosed. The move marks the second time the
long-distance firm has added large
amounts to its earnings revision.

Merrill fires326 Thomas Davis, one of two vice chairmen, for his refusal to testify in an
investigation of several Enron deals.

Rosie O'Donnell scuttles327 her Rosie magazine joint venture with Bertelsmann's Gruner +
Jahr.

20: Dennis Kozlowski's ex-wife328 agrees to post $10 million in cash as security for the
former Tyco chief executive's bail
bond.

Citigroup agrees329 to pay $215 million to settle FTC allegations that Associates First
Capital engaged in deceptive and
abusive lending.

24: Xerox is facing330 a criminal inquiry by federal authorities related to the copier
company's massive misstatement of
earnings. FBI agents and prosecutors recently have questioned James Bingham, a former
assistant treasurer, who has said
he was fired for trying to rein in unethical accounting.

Salomon agrees331 to pay $5 million to settle civil charges levied by the NASD that
analysts touted Winstar, while
privately questioning the stock. Winstar, a telecom company, filed for bankruptcy-court
protection in 2001.

Adelphia founder John Rigas332, two of his sons and two other former executives are
indicted on charges of looting the
firm.

25: The Fed votes333 to hold interest rates steady at 1.75%, sending the Dow Jones
industrials tumbling 189.02 points, or
2.4%, to a four-year low of 7683.13

Dynegy agrees334 to pay a $3 million fine to settle an SEC complaint that it artificially
inflated results it reported to
investors.

26: Merrill employee335 Douglas Faneuil agrees to plead guilty to a misdemeanor charge and
provide testimony against
Martha Stewart and others over their sales of ImClone stock in 2001.

27: WorldCom's ex-controller336, David Myers, pleads guilty to fraud, saying he
manipulated accounts at the behest of
management.

30: West Coast port employers337 close docks as contract talks stall after a work slowdown
disrupts port operations.

New York prosecutors338 are examining whether Tyco's outside auditor,
PricewaterhouseCoopers, knew about secret
bonuses paid to former Tyco executives and accounting that regulators say hid the
payments. Meanwhile, investigators are
probing339 whether a secret $40 million payment that Tyco made to settle a lawsuit in 2000
represented a payoff to
conceal possible auditing improprieties.

Citigroup offers340 to create a separate research arm as part of a global settlement with
regulators probing allegations of
stock hyping at its Salomon unit.

October

1: Torricelli bows out341 of his New Jersey Senate race, pressed by Democratic elders who
feared that his flagging
campaign, dogged by ethics questions, could cost the party the Senate.

New York Attorney General342 Eliot Spitzer sues five telecom executives, demanding that
they return to investors the $1.5
billion that the suit says was obtained from the sale of stock in their own firms and $28
million in profits from the sale of
Salomon IPOs.

2: Global Crossing's chairman343 pledges to contribute $25 million to offset some of the
pension-fund losses sustained by
employees.

New Jersey Democrats pick344 ex-Sen. Lautenberg to fill the vacancy left by Torricelli's
withdrawal.

3: Congressional investigators345 find that Goldman allocated hot IPO shares to top
executives at 21 U.S. companies,
taking in lucrative investment-banking fees from those firms in the late.

4: Conseco's Gary Wendt346 abruptly steps down as CEO but says he will remain chairman.

Martha Stewart resigns347 from the board of the NYSE, intensifying questions about her
future at the company she
founded.

7: Sniper attacks continue348 around Washington, D.C., after five people were killed in
Maryland suburbs. Charles
Moose, the Montgomery County police chief, was the foremost face in the sniper hunt. Over
the following weeks, a total
of 10 people are killed and three are wounded.

9: A judge grants349 Bush's request for a court order to reopen West Coast ports, the
first time a president has invoked
the Taft-Hartley Act in 24 years. The White House cites economic damage and the war on
terrorism as reasons for the
move.

11: Congress approves350 a war resolution empowering Bush to attack Iraq if efforts to get
the U.N. to force
disarmament fail. The Democratic-led Senate approved the measure 77-23, following earlier
House approval.

The FCC rejects351 an $18 billion merger of satellite-TV companies EchoStar and Hughes,
citing harm to consumers.

Two ex-WorldCom employees352 plead guilty for their role in the $7.2 billion accounting
fraud.

Died: Bernard H. Ridder, 85, newspaper publisher who helped to engineer the 1974 Knight
Ridder merger, in San Mateo,
Calif., after a stroke.

14: Lucent says353 it will cut 10,000 jobs and take a $4 billion restructuring charge,
raising new concerns about long-term
liquidity.

A weekend bombing354 at a tourist nightspot in Bali leaves more than 190 dead, deepening
fears about a fresh terrorism
surge. The Indonesia bombing took place on the second anniversary of the USS Cole bombing
in Yemen.

Died:355 Stephen Ambrose, 66, popular historian, mainly of World War II, in Bay St. Louis,
Miss., of cancer.

16: Samuel Waksal pleads356 guilty to insider trading and other charges.

Motorola turns in357 its first positive quarterly results since the fourth quarter of 2000
but fails to meet revenue forecasts.

17: Congress signs off358 on the $355.1 billion Pentagon spending bill and sent Bush the
$3.87 billion election-overhaul bill
as lawmakers rushed to get home and campaign.

Dynegy plans359 to leave the energy-trading business and says its president resigned.

North Korea has told360 the U.S. it has a secret nuclear-weapons program in violation of a
deal with the Clinton
administration to halt such efforts in exchange for a civilian nuclear plant, U.S.
officials said. The admission came during an
early October visit by a U.S. envoy.

18: The Vatican rejects361 parts of the U.S. Catholic Church's new policy on clerical sex
abuse, saying they would violate
the due-process rights of accused priests.

The former head362 of Enron's Western energy-trading desk admits he conspired to
manipulate California's electricity
market to maximize profits.

21: Irish voters approve363 EU expansion 63% to 37%, reversing a 2001 rejection that had
stymied Eastern European
hopes. Ten more nations are set to join the EU by 2004.

Dynegy fires364 six people and disciplines seven others on its natural-gas trading desk
for allegedly giving false data to
publishers.

22: A burial box from 63 A.D. may be the earliest known artifact linked to Jesus, a French
expert says. Others aren't sure.
An inscription says the apostle James was Christ's brother.

23: The New York Times365 says it will buy the Washington Post's 50% stake in the
International Herald Tribune, ending
a longtime partnership.

Pfizer receives366 a patent covering the way Viagra works to treat impotence and files
suits to block competing products.

24: AOL Time Warner says367 it will restate its financial results for the past two years
because of more questionable
advertising transactions at America Online. The restatement will reduce revenue by $190
million and is likely to deepen
uncertainty about accounting issues.

Chechen rebels seize368 as many as 700 people at a Moscow theater, demanding an end to
Russian army operations in the
breakaway republic. Days later, gas based on fentanyl, a narcotic painkiller, is used by
Russia to end the siege but it kills
more hostages than Chechen gunfire. Russian prosecutors later put the death toll at 128
hostages and 41 Chechen rebels.

25: Eliot Spitzer and the SEC369 unveil a plan for a panel to oversee independent stock
research that brokerage firms
would be required to provide to individuals.

Bristol-Myers says370 it will restate sales and earnings for at least the past two years
due to a wholesale inventory-stocking
issue.

Ballistics tests show371 the sniper has been caught, police said. The ATF matched a
military-style rifle found in the car of
John Allen Muhammad, 41, and John Lee Malvo, 17, to 11 of the 13 Washington-area shootings
that began Oct. 2. An
Alabama homicide, mentioned in a call to police, yielded a print that broke the case.

28: EchoStar moves372 to revive its $18 billion bid to take over rival
satellite-television broadcaster Hughes Electronics,
agreeing to help turn a third company, Cablevision Systems, into a viable competitor.

William Webster373, who served as director of the FBI and CIA, is chosen to head the SEC's
new accounting-oversight
board.

Carnival wins374 a lengthy battle to acquire P&O Princess as the smaller cruise line
abandons a deal with Royal
Caribbean.

The Anaheim Angels375 defeated the San Francisco Giants 4-1 on Sunday to win a World
Series that went seven games.
It is the lowest-rated series and one of the least watched in history.

Died:376 Paul Wellstone, 58, liberal Minnesota Democratic senator Friday in a plane crash
that also kills his wife, daughter
and five others.

30: Citigroup plans377 to break out its research and retail-brokerage operations into a
new unit, amid pressure on the firm
from regulators to tackle stock-analyst conflicts. Sanford C. Bernstein CEO378 Sallie
Krawcheck is later named to run the
new unit.

French prosecutors379 launch a criminal probe of Vivendi's financial disclosures under its
ex-chairman, Jean-Marie
Messier.

Arafat wins approval380 for his cabinet, a roster of old faces, after a protracted
struggle with Palestinian leaders demanding
political changes and safeguards against graft.

31: Walter Mondale takes381 the late Sen. Wellstone's place on Minnesota's ballot.

November

1: Antitrust enforcers sue382 to block EchoStar's $18 billion deal for rival satellite-TV
firm Hughes, saying it would hurt
consumers.

Enron ex-official383 Andrew Fastow is indicted for fraud, conspiracy, money-laundering and
coercing his lieutenant to
destroy documents.

Tenet shares fall384 26% on news of a probe into whether two doctors at one of its
hospitals performed unnecessary
procedures. Tenet responds by hiring an outside medical auditor to investigate. The
federal government later says it will
conduct an audit to see whether certain Medicare payments to the company were proper.

The Dow Jones Industrial Average385 ends the month with a 10.6% gain, the second-best
October ever.

4: Microsoft wins386 a sweeping victory, as a federal judge upholds the software company's
antitrust settlement.

5: U.S. forces kill387 a top bin Laden aide and five others in Yemen. The missile that hit
Qaed Salim Sunian al-Harethi's
car was fired from an unmanned aircraft, the first such attack outside Afghanistan. The
U.S. later discloses that a
Yemeni-American was among those killed. Ahmed Hijazi, a U.S. official said, had ties to
alleged members of an al Qaeda
cell in Buffalo, N.Y.

6: Harvey Pitt quits388 as SEC chairman amid controversy over his appointment of William
Webster to head the
accounting-oversight board.

WorldCom discloses389 that its false profits could top $9 billion. The SEC slapped the
firm with more fraud charges and
said the deception goes back to 1999.

Prices of consumer goods390 are falling for the first time since 1960, leading policy
makers to worry about the prospect of
deflation.

Tuesday's elections produced391 a Senate of 51 Republicans, 47 Democrats, one independent,
and one seat to be
decided in a runoff. Republicans were able to hold onto their majority in the House. In
December392, Sen. Mary Landrieu
of Louisiana boosts Democrats' seats to 48 as she wins a runoff against Republican Suzanne
Haik Terrell.

7: The Fed slashes393 interest rates by an unexpectedly large half-a-percentage point to
1.25%.

Richard Gephardt394 says he will quit as House leader.

11: The SEC's top accountant395 quits, increasing pressure on William Webster to withdraw
as head of the
accounting-oversight board.

13: Jack Grubman indicates396 Citigroup CEO Sanford Weill pushed him to upgrade AT&T's
stock rating as part of
Weill's power struggle with Citigroup's former co-chairman, John Reed.

William Webster quits397 as chairman of the new accounting-oversight board, creating more
turmoil in federal securities
regulation.

14: Visa and MasterCard398 undertook a decade-long campaign to discourage the use of rival
debit cards, according to
documents unsealed in an antitrust suit brought by retailers.

15: Williams colluded399 with partner AES to drive up power prices during the California
electricity crisis, a report
released by FERC indicates.

Britain's HSBC400 agrees to buy Household International in a deal valued at $16.15
billion.

The FCC frees401 major wireless carriers of their obligation to pay about $16 billion they
had bid for NextWave licenses.

House Democrats choose402 Nancy Pelosi of California as their new leader and
Cuban-American Robert Menendez of
New Jersey as caucus chairman, the highest posts ever held in Congress by a woman and a
Hispanic. Pelosi, who set a
goal of crafting a "down the center" program for economic growth, is challenged to revive
a party stunned by election
setbacks.

18: Michael D. Capellas403 officially is named WorldCom's president, chairman and chief
executive.

The industrial average404 posts a sixth consecutive week of gains, rising to 8579.09.

19: CA's Charles Wang405 steps down as the software company's chairman and a board member.
Computer Associates
has come under scrutiny by federal investigators probing its accounting practices. CEO
Sanjay Kumar is named to
succeed Wang, the company's founder.

National Century files406 for bankruptcy protection, as a federal probe continued into the
health-care-industry financier.

Osama bin Laden is alive407, U.S. officials conclude after technicians confirm an audio
tape given to al-Jazeera TV last
week is genuine.

20: The Senate passes408 the Homeland Security bill on Bush's terms.

Iraq pledges409 to divulge by Dec. 8 all data on weapons of mass destruction.

A crippled oil tanker splits410 in two and sinks off northwest Spain, days after several
countries, fearful for their coasts,
refused to allow the leaking vessel to dock for repairs.

22: A top al Qaeda operative411 was captured this month and is under U.S. interrogation,
Washington says. Abd
al-Rahim al-Nashiri, a Saudi, is believed to have coordinated the 2000 bombing of the USS
Cole and been involved in the
1998 Africa embassy bombings. Indonesian police arrest an alleged mastermind of the Bali
bombings that killed nearly 200
in October. He is Imam Samudra, an Afghanistan-trained leader of the al Qaeda-tied Jemaah
Islamiyah organization.

25: West Coast dock employers412 and the dockworkers union reach a tentative six-year
contract accord over the
weekend.

The French government sells413 its 10.9% stake in Credit Lyonnais to BNP Paribas for $2.19
billion, in a surprise move.

France Telecom agrees414 to a $7.58 billion bailout of Mobilcom after a fruitless venture
in Germany's wireless market.

26: The SEC files415 its first enforcement actions under Regulation FD, the rule adopted
in 2000 to prevent selective
disclosure of market-moving news. The commission announces cease-and-desist orders against
Raytheon and its finance
chief and Secure Computing and its CEO, and fines Siebel Systems $250,000.

Authorities arrest416 three men in what they said was the biggest U.S. identity-theft case
ever. The credit reports of more
than 30,000 Americans were stolen and sold.

Bush signs417 the bill creating a Homeland Security Department and says he will put
antiterrorism adviser Ridge in charge
of it.

27: Four Russian oil companies418 plan to build a $1.5 billion Arctic port that could
eventually supply up to 10% of U.S.
crude imports.

29: UAL takes a blow419 in its struggle to avoid filing for bankruptcy-court protection
when United Airlines' mechanics
vote to reject pay cuts vital to the carrier's request for government financial aid.
Nonunion salaried employees had earlier
agreed to contribute $1.3 billion in wage concessions and productivity improvements.

Suicide bombers kill420 at least 12 at an Israeli-owned resort hotel in Mombasa, Kenya,
and two shoulder-fired missiles
narrowly miss an Israel-bound 757 jetliner as it takes off from the city's airport with
261 aboard. In Israel, two Palestinian
gunmen kill six Israelis at a Likud polling station in the northern town of Beit Shean.

December

6: Venezuela's President421 Hugo Chávez vows to use the military to keep oil flowing
despite a general strike against his
rule. But the action lasts for weeks, paralyzing the country's oil industry and pushing
crude-oil prices to a two-year high of
more than $33 a barrel.

Died:422 Roone Arledge, 71, pathbreaking TV news and sports executive at ABC, in New York,
Thursday of cancer.

9: The U.N. begins423 digesting the reams of documents Iraq submitted in compliance with a
Dec. 8 deadline for an arms
declaration. Iraq maintains that it has no weapons of mass destruction. Bush later
condemns424 the disclosure as full of
omissions, and Powell says425 Iraq is in "material breach" of the U.N. resolution, as the
12,000-page declaration "totally
fails" to meet requirements and is riddled with deception. But he stops short of
threatening war.

10: Bush chooses John Snow426, chief executive of railroad company CSX, to be the
secretary of the Treasury. The
nomination follows a shake-up427 in the White House's economic team late the prior week,
in which Paul O'Neill and
Lawrence Lindsay abruptly resigned as Treasury chief and head of the White House's
National Economic Council,
respectively. Bush later names428 Stephen Friedman, a former Goldman Sachs chairman, to
lead the economic council.

United Air parent UAL429 files for bankruptcy-court protection. The move comes shortly
after United's request for a $1.8
billion loan guarantee is rejected by the government.

Senate leader Trent Lott430 begins a litany of apologies for remarks on Sen. Strom
Thurmond's 100th birthday that
seemed to indicate approval of the segregationist platform of Thurmond's 1948 presidential
bid. The comments ignite a
media furor and a political firestorm, including rebuke from Bush and calls for the
Mississippi Republican to step down as
the party leader in the Senate.

11: Bush nominates431 veteran investment banker William Donaldson to head the SEC, a move
aimed at reassuring
investors and lawmakers after a year of business scandal.

EchoStar abandons432 its $18 billion bid to buy Hughes, making News Corp. the likely
front-runner for the satellite-TV
firm.

16: Credit Agricole agrees433 to acquire Credit Lyonnais in a deal that values Credit
Lyonnais at about $19.94 billion in
cash and stock. The French banks' proposed pact is a setback for BNP Paribas, France's
largest bank, which last month
bought a 16.3% stake in Credit Lyonnais.

17: Bush names434 ex-New Jersey Gov. Tom Kean to head the Sept. 11 commission
investigating intelligence failures,
following ex-Secretary of State Kissinger's withdrawal.

18: McDonald's warns435 that the company expects to report its first quarterly loss since
going public 37 years ago, the
result of taking $390 million in charges.

Bush orders436 a rudimentary missile shield deployed in two years. The land- and sea-based
system is expected to push
annual spending on the program to $9.5 billion for fiscal 2004 and 2005 from $8 billion
for 2003.

19: Allianz CEO437 Henning Schulte-Noelle quits, following a record $2.57 billion
third-quarter loss on insurance losses
and the acquisition of Dresdner Bank. The German company names Michael Diekmann to succeed
him.

A California judge438 threw out a $28 billion punitive-damage award against Philip Morris,
reducing the judgment to $28
million.

20: Gold prices climb439 to their highest level since 1997, boosted by concerns about
Iraq, firm oil prices and weak stock
markets.

23: A stock-research settlement440 unveiled by regulators requires 10 firms to pay $1.4
billion, including $900 million in
penalties, $450 million for independent research over the next five years and $85 million
for investor education.

The U.S. urges441 North Korea to replace U.N. surveillance equipment it dismantled at a
nuclear reactor. But Pyongyang
continues its moves toward restarting the nuclear plant that the communist regime claims
will generate electricity, but that
experts say can produce weapons-grade plutonium. The ensuing standoff ignites new security
concerns.

24: Sun Microsystems wins442 a big victory as a federal judge orders Microsoft to
distribute Sun's Java programming
technology with the Windows operating system.

Senate Republicans443 elect Tennessee heart surgeon Bill Frist as majority leader in the
wake of Trent Lott's resignation444
late the prior week.

30: U.N. inspectors445, at North Korea's insistence, prepare to leave the country after
Pyongyang declares a 1994
agreement void and begins refueling a Yongbyon reactor suspected of producing plutonium
for bombs.

31: A Tyco internal inquiry446 finds "a pattern of aggressive accounting" intended to
inflate its reported earnings, but the
problems weren't large enough to be "material" to the company's overall profit.

Global Crossing founder447 and Chairman Gary Winnick resigns after getting
bankruptcy-court approval for a
reorganization plan.

 http://online.wsj.com/article_email/0,,SB1041524053215294353-search,00.html?collection=wsjie%2F30day&vql_string=fcc%3Cin%3E%28article%2Dbody%29

Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/