That’s all they wrote…

March 1, 2007

images.jpegAbout a third of the way into Genworth Financial’s (GNW) 227 page 10-K that was filed last night was this little pearl:

In November 2006, one of our subsidiaries received a grand jury subpoena from the United States Department of Justice, Antitrust Division, and a subpoena from the SEC, each requiring the production of documents and information related to an investigation into alleged bid-rigging involving the sale of GICs to municipalities.

That was on page 71 and other than another two sentences saying that the company doesn’t directly sell GICs — guaranteed investment contracts — to municipalities, though a subsidiary provided management and administrative services up until this past December, there was no other detail in those 227 pages. We’re sure there’s absolutely no significance between the time the subsidiary got out of the business and the timing of the subpoena, by the way.

It seemed particularly odd that the company, which judging by some of the legal disclosures faces more than the garden variety legal issues, chose not to say anything about this for three months. (UPDATE: I stand corrected. A reader just pointed out a press release that wasn’t on the company’s site for some odd reason, but was on Yahoo and Marketwatch). Judging by this list, Genworth certainly knows how to put out press releases. And judging by this list, they also know how to issue 8-Ks. So what’s with the minimalist approach?

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