No Cheer For Gibson Greetings

BANKERS TRUST MAY WELL have done wrong--but that won't get Gibson Greetings off the hook. The Securities & Exchange Commission on Oct. 11 settled its case against Gibson and two former executives, finding that the company failed to account properly for 1993 derivative transactions with Bankers. Gibson also failed to establish controls to track its positions, the SEC stated, and neither reported the associated risks nor kept books very well. In a lawsuit filed against Bankers and settled in 1994, Gibson Greetings claimed that the company lost at least $23 million from the transactions.

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