Two of the most stunning business collapses of the last few years produced hefty settlements for some of the victims this week.Citigroup, Inc. on Monday agreed to pay $2.65 billion to investors who claim the firm’s brokerage unit pumped up WorldCom despite their knowledge of massive losses at the company. The suit, which sought $54 billion, also alleged that Citigroup's brokerage arm, Salomon Smith Barney, offered big loans to WorldCom’s then-chief executive Bernard Ebbers in a swap for investment banking business.Citigroup, the world's largest bank, denies wrongdoing.

Another April 15 has come and gone and if, like many Americans, you are still feeling bitter about the bite the taxman took out of your wallet, it’s still safe to indulge in a little fantasizing about skipping off to a tax haven like the Cayman Islands.

The Treasury Department and the Internal Revenue Service this week issued final regulations relating to the deduction for interest paid on qualified education loans. "The final regulations issued today clarify which amounts qualify for the student loan interest deduction to ensure that students obtain the maximum deduction permitted under the law," said Acting Assistant Secretary for Tax Policy Greg Jenner.

Companies that offer 401(k) plans are becoming more aggressive about automatically enrolling employees in the wake of an Internal Revenue Service blessing on the practice, as long as employees are aware of what is occurring.While 401(k) plans have been long considered among the best retirement preparation tools, millions of eligible workers are not taking full advantage of the programs, the Sun-Sentinel reported.Some start with good intentions by committing a percentage of their pay to the savings plans but never increase the contribution as their pay increases.

The retrial of Frank P. Quattrone suggests that prosecutors are focusing on the cover-up of the crime rather than the crime itself.Rather than mire a jury in the complexity of financial transactions and other details, prosecutors are filing charges connected with the straightforward question of whether the defendant lied to the government or hindered its investigation, the New York Times reported.

In a matter that raises questions of attorney-client privilege, Chicago law firm Sidley Austin Brown & Wood has been ordered by a federal judge to turn over the names of 46 former tax shelter clients. The 46 clients do not want their names divulged, the Chicago Sun-Times reported.Sidley & Austin, one of the largest and oldest law firms in Chicago, acquired Brown & Wood in 2001.

More than half (52 percent) of 125 companies polled are considering changes or already have made changes to their pension plans in the past year, according to a survey by Deloitte Consulting LLP.Buffeted by increased costs due to falling interest rates and investment returns and by continued pressure from financial analysts to limit future risk, more companies are opting to move away from defined benefit plans. Among those respondents that have changed their plans, the single most common shift (among 38 percent) was freezing their pension plan and moving to a defined contribution plan.

California’s recently completed tax amnesty program has yielded more than $1 billion in revenue, nearly 12 times more than the state had originally anticipated, the San Jose Mercury News reported. The unexpected results of the amnesty program also shed the light on just how much money has been hidden in questionable tax shelters.As states grapple with shortfalls and budget crises, experts say that California should be held up as an example of what can be done to raise revenue.

Ulysses S. Grant is getting a face-lift. Grant, who has adorned the $50 bill since 1913, will debut with his new look this week in the latest of the bill redesigns done to ward off counterfeiters.Production of the new $50s will begin this summer at the printing plant in Ft. Worth, TX, where the new look was unveiled this week.