NU Online News Service, Sept. 3, 2003, 7:17 p.m. EDT – A guilty plea in a government investigation concerning allegations of manipulation in the purchase of the junk bond portfolio of the failed Executive Life Insurance Company would advance a civil suit being pursued by California Insurance Commissioner John Garamendi, the commissioner says.
A representative for the U.S. attorney’s office said an agreement in principle is pending with the French bank Credit Lyonnais and a French government agency, Consortium de Realisation, according to an article in The New York Times. At press time, the U.S. attorney’s office could not be reached for comment.
The bank and the French agency will pay a combined total of about $575 million, according to the Times.