Word: huttons
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...This is a sad and difficult day for E.F. Hutton and for me personally," said a subdued Robert Fomon, chairman and chief executive of Wall Street's fifth-largest brokerage firm. Hours before Fomon appeared at a press conference in New York City last week, Hutton President Scott Pierce had pleaded guilty on behalf of the firm to 2,000 separate criminal charges of mail and wire fraud. After accepting Pierce's pleas in a Scranton, Pa., courtroom, Federal Judge William Nealon fined Hutton the maximum $1,000 on each charge, or a total of $2 million. Never before...
...charge made last week by Attorney General Edwin Meese was that Hutton had used a sophisticated method of check kiting to avoid high interest rates. Kiting is a procedure in which two or more checking accounts are played off against each other to stay one step ahead of a bounced check. After overdrawing an account at one bank, a person or institution pays the overdraft by writing another check, which overdraws an account on another bank. With some quick moves, it is possible to stay just ahead of the bankers and in effect obtain an interest-free, short-term loan...
...case of E.F. Hutton, executives deposited funds in local banks and then wrote checks for sums greater than the amounts in the accounts. Those were then covered a few days later by checks from other Hutton branches. In addition, 83 Hutton offices were involved in multiple transfers that moved money among a series of banks on its way between Hutton offices. As much as $10 billion was involved over a 20-month period starting in July 1980, during which time short-term interest rates rose to more than 20%. Thus the practices provided E.F. Hutton with interest-free loans...
...least 400 commercial banks were affected by the transactions, some of them small rural banks so eager for Hutton deposits that they might have been inclined to ignore doubtful practices. In addition to the $2 million fine and $750,000 in court costs, Hutton has had to set aside a reserve to pay the banks the missing interest, which could amount to $8 million or more...
...Although Hutton does succeed in endearing himself to the audience with his basset-hound looks and giggly naivete, he is restricted by Clark's homogenous direction and lack of originality. In addition to boring us with 45 endless minutes of Jimmy plastering his insignia on everything in sight. Clark refuses to let his character develop anything but superficial personalities. Admittedly appealing in a teddy-bearish sort of way. Hutton's Lynch is essentially nothing more than an anti-social wise guy whose highly limited intelligence seriously puts into question his ability to evade detection from the police for as long...