He says the deal will be dilutive to GAAP earnings per share by one penny (because of nonrecurring charges related to deferred compensation), and accretive to pro-forma earnings in 2004.
Union entered into a deferred prosecution agreement with the Justice Department on charges of failing to maintain an effective anti-money-laundering program.
Union Bank entered into a deferred prosecution agreement with the Justice Department on charges of failing to maintain an effective anti-money laundering program.
Ciena says the deal would begin to add to pro forma earnings in the second-half of fiscal 2002 but would dilute pro forma earnings for fiscal 2001 by 19 cents to 22 cents, excluding one-time charges and amortization of intangibles and deferred stock-compensation costs.
For some time, BSA violations have been addressed by regulators as a compliance shortcoming, or occasionally resolved through the use of deferred prosecution agreements pursuant to which the government agrees to dismiss the charges against a financial institution in exchange for the implementation of additional anti-money laundering measures, forfeiture of fees and an agreement in which the bank neither admits nor denies wrongdoing.
Instead it and US prosecutors came to what is called a deferred prosecution agreement, with the fine being paid in exchange for the charges being dropped.