Business briefs for May 13, 2003

Tuesday, May 13, 2003 | 9:53 a.m.

Bill creates state commission

CARSON CITY -- A state Commission on Construction Defects would be created to help homeowners get their houses repaired under a bill approved by the Senate.

Senate Bill 371, which goes to the Assembly, provides the homeowner must contact the contractor twice to get defects corrected. If no action is taken, he or she would then file a complaint with the new commission.

The vote was 18-3 with Democrats Terry Care, Maggie Carlton and Dina Titus, all of Las Vegas, opposing the bill.

Former tech banker indicted

NEW YORK -- Frank P. Quattrone, the former star technology banker at Credit Suisse First Boston, was indicted by a federal grand jury on Monday on charges that he obstructed justice and destroyed evidence.

Quattrone's legal team is expected to mount a vigorous courtroom battle against prosecutors hoping for the first criminal conviction of a financier stemming from the stock market collapse.

The charges are broadly similar to a criminal complaint brought against Quattrone by the U.S. attorney's office late in April. They state that in December 2000, Quattrone, who then headed Credit Suisse's investment banking division for technology companies, endorsed an e-mail recommendation from a colleague that his bankers destroy their files in advance of an expected onslaught of civil lawsuits.

Cost cutting, strong euro help earnings

BENTONVILLE, Ark. -- Wal-Mart Stores Inc., the world's largest retailer, today said profit rose 14 percent, bolstered by cost cutting and rising currencies in Europe. Sales increased at the slowest pace in more than a decade.

Profit from continuing operations climbed to $1.83 billion, or 41 cents a share, from $1.6 billion, or 36 cents, a year earlier, Wal-Mart said in a statement. Earnings fell short of expectations by a penny. Excluding results from its McLane distribution unit that is being sold, sales increased 9.7 percent to $56.7 billion in the three months ended April 30.

Profit at the international unit rose 13 percent, helped by favorable currency exchange rates. Chief Executive H. Lee Scott has been cutting expenses by having the retailer buy more merchandise and supplies directly. Higher demand for clothing such as Faded Glory denim helped buffer margins after U.S. same-store sales rose less than forecast in March and April.

Agency seeks collection help

WASHINGTON -- The Internal Revenue Service says it needs help trying to collect $280 billion in unpaid taxes.

The agency, in a reversal, will tell a congressional subcommittee today that it wants to turn over at least $18 billion worth of obligations to private companies that would keep some of the money they collect.

IRS officials and Commissioner Mark Everson, confirmed by the Senate two weeks ago, say they need to focus their resources on complex tax cases while private agencies pursue scofflaws more efficiently. Critics of the proposal say similar experiments have failed and have questioned how companies collecting the revenue will behave when they're paid on a contingency basis.