Return to Transcripts main page
CNN Live At Daybreak
MCI Accused of Not Paying Local Access Fees
Aired July 28, 2003 - 06:16 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time for a little business buzz right now. A troubled long distance giant is facing new allegations of fraud.
Carrie Lee has the latest for us.
Good morning -- Carrie.
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Good morning, Carol.
That's right, according to published reports, federal prosecutors are looking into whether MCI actually disguised long distance calls as local calls in order to avoid paying access fees to local carriers since 1994. Now MCI, formerly known as WorldCom, claims that the allegations are part of a plan by rivals, such as SBC Communications, AT&T and Verizon, to keep it from emerging from bankruptcy.
Now this comes just a couple of weeks before MCI's court hearing that could determine indeed whether it can emerge from bankruptcy protection. Remember a year ago, MCI revealed nearly $12 billion in accounting fraud, the largest in corporate history. MCI says that it will cooperate with investigators.
So, Carol, just when you think this company has the worst behind it, things like this are still coming to fruition. So we'll have to see what happens here, but it looks like the company's troubles are not completely over as of yet.
COSTELLO: Sure does.
How are the futures looking this morning?
LEE: Pretty good. You know, in fact we saw a late day rally on Friday, the Dow closed up nearly 2 percent. The Nasdaq, the S&P 500 up 1.75 percent. We do have some profit reports coming out today, including Dow component American Express, during the session. We're also going to hear from Xerox and Northrop Grumman.
No economic reports today, although later in the week we'll have a reading on the unemployment rate, expected to hold steady at 6.4 percent, a nine-year high. Also a reading on July consumer confidence, so a lot on the plate for this week. But so far, looking pretty good this Monday morning -- Carol.
COSTELLO: OK. We'll check back with you. Carrie Lee live from New York at the Nasdaq site this morning. TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired July 28, 2003 - 06:16 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time for a little business buzz right now. A troubled long distance giant is facing new allegations of fraud.
Carrie Lee has the latest for us.
Good morning -- Carrie.
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Good morning, Carol.
That's right, according to published reports, federal prosecutors are looking into whether MCI actually disguised long distance calls as local calls in order to avoid paying access fees to local carriers since 1994. Now MCI, formerly known as WorldCom, claims that the allegations are part of a plan by rivals, such as SBC Communications, AT&T and Verizon, to keep it from emerging from bankruptcy.
Now this comes just a couple of weeks before MCI's court hearing that could determine indeed whether it can emerge from bankruptcy protection. Remember a year ago, MCI revealed nearly $12 billion in accounting fraud, the largest in corporate history. MCI says that it will cooperate with investigators.
So, Carol, just when you think this company has the worst behind it, things like this are still coming to fruition. So we'll have to see what happens here, but it looks like the company's troubles are not completely over as of yet.
COSTELLO: Sure does.
How are the futures looking this morning?
LEE: Pretty good. You know, in fact we saw a late day rally on Friday, the Dow closed up nearly 2 percent. The Nasdaq, the S&P 500 up 1.75 percent. We do have some profit reports coming out today, including Dow component American Express, during the session. We're also going to hear from Xerox and Northrop Grumman.
No economic reports today, although later in the week we'll have a reading on the unemployment rate, expected to hold steady at 6.4 percent, a nine-year high. Also a reading on July consumer confidence, so a lot on the plate for this week. But so far, looking pretty good this Monday morning -- Carol.
COSTELLO: OK. We'll check back with you. Carrie Lee live from New York at the Nasdaq site this morning. TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
