Derivatives risk discounted
Federal Reserve Chairman Alan Greenspan, saying derivatives pose no "significant problems" for banks, yesterday rejected calls for tighter federal supervision of the $14 trillion market.
The Fed chairman acknowledged that unmanaged derivatives "can pose risks to individual users and possibly also to the overall stability of the financial system," but he said banks are adequately controlling risks in their derivatives dealings. Mr. Greenspan's remarks came in testimony before the House Energy and Commerce Committee telecommunications and finance subcommittee.
Pharmaceutical suit filed
The family of a Maryland man who died of heart failure after taking a prescription sinus medication has sued Marion Merrell Dow Inc. for $55 million in damages.
In a suit before the U.S. District Court in Baltimore, Theresa L. Martz claims her husband, Jeffrey Martz, 33, died of cardiac arrhythmia in 1992 shortly after taking Seldane-D.
She claims the drug company was negligent in failing to adequately test the drug and investigate reports of alleged side effects.
In court papers, attorneys for the Kansas City, Mo.-based company wrote that even if there are side effects associated with the use of Seldane-D, Mr. Martz assumed the risk by taking the drug after being warned of potential consequences.
Wal-Mart ads criticized
An advertising review board yesterday told the nation's largest retailer, Wal-Mart Stores Inc., to change its slogan -- "Always the low price. Always" -- because it didn't ring true.
The National Advertising Review Board, a self-regulating mechanism of the ad industry, said Wal-Mart should avoid implying that its prices are always the lowest.
Wal-Mart said it disagreed with the decision but would voluntarily modify its advertising slogan.
B&D; makes SEC shelf filing
Black & Decker Corp. filed yesterday with the Securities and Exchange Commission to sell as much as $500 million of debt securities.
The Towson-based manufacturer of power tools and outdoor products may use underwriters to sell the securities, but it didn't list any underwriting firms in the shelf registration statement.
Black & Decker said it plans to use the proceeds from the sale for general corporate purposes.
Arby's ad account awarded
W. B. Doner & Co. has been named to handle 12 regional marketing co-op accounts of the Arby's fast-food chain, in regions including Florida, North Carolina and Ohio. The accounts were previously handled by local agencies in those areas.
The Baltimore ad agency has been handling Arby's national account and the Richmond, Va., regional co-op account.