A Red Face for the Red Baron

Financial Corporation of America stumbles

Charles Knapp, chairman of California's huge Financial Corporation of America (assets: $32.7 billion), was sporting a new tan from a sailing vacation in the Caribbean last week, but what he had to say at a hastily called Los Angeles press conference contrasted sharply with his relaxed appearance. Under pressure from the Securities and Exchange Commission, Knapp explained, F.C.A. was adjusting its earnings report to show a second-quarter loss of $107.5 million instead of the $31.1 million profit announced earlier. The dispute with the SEC was a technical argument concerning the manner in which the company reported sales...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!