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Crime: Dewey & LeBoeuf execs indicted

The bill has come due for Dewey & LeBoeuf, said Jennifer Smith in WSJ.com. Manhattan prosecutors last week presented a grand jury indictment alleging that three leaders of the now defunct white-shoe law firm, including ex-chairman Steven Davis, altered the firm’s accounts “to create the illusion that the firm had weathered the financial crisis and was set to grow.” The 106-count -indictment—including charges of grand larceny, securities fraud, conspiracy, and falsifying business records—may not be the last word. The Securities and Exchange Commission also filed charges against the executives, who could face up to 25 years in prison if convicted.

This reckoning was a long time coming, said James Stewart in NewYorker.com. While “many law firms have failed over the years,” none have done so “as spectacularly as Dewey & LeBoeuf.” That doesn’t mean the prosecutors will find it easy to prove “a massive effort to cook the books.” Prosecutors say several people involved with the firm’s bookkeeping operations have pleaded guilty and are cooperating, but they face “a high burden of proof” to convict the firm’s highest-ranking executives. It’s hard to know what else prosecutors may have up their sleeve. Whatever it is, “there’s little evidence of it in the indictments.”

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Housing: Senators agree to ax Fannie and Freddie

The days of Fannie Mae and Freddie Mac may be numbered, said Jim Puzzanghera in the Los Angeles Times. Two “key senators announced bipartisan agreement” this week “on a plan to overhaul the housing finance system” by winding down the companies and replacing them with a new agency that would offer government guarantees for mortgages. Until now, lawmakers have been “at odds about how exactly” to shut down Fannie and Freddie, which the federal government took over in 2008 “as they neared bankruptcy from bad loans they guaranteed during the subprime housing boom.”

Apparel: Men’s Wearhouse buys Jos. A. Bank

It’s official, said Lindsey Rupp in Businessweek.com. After “a five-month takeover battle,” Men’s Wearhouse has struck a deal to buy smaller rival Jos. A. Bank Clothiers for $1.8 billion in cash—56 percent above Jos. A. Bank’s closing price on Oct. 8, when Men’s Wearhouse first publicized its initial bid. The companies said this week that both retailers’ boards had approved the deal, which will also require Jos. A. Bank to terminate a separate transaction “to buy the Eddie Bauer brand.” The combined company, to be led by Men’s Wearhouse CEO Douglas Ewert, will operate more than 1,700 U.S. stores.

Food: Chobani to sell minority stake

Chobani is eyeing the market, said Olivia Oran in Reuters.com. The New York state–based Greek yogurt maker is “looking to sell a minority stake in a deal that could value the company at around $2.5 billion.” Sources say the company has been working with Bank of America “as it considers selling roughly 20 percent, and is speaking to consumer companies and private equity firms to gauge their interest.” The yogurt maker “has grown into a U.S. sensation,” since its 2005 founding, with sales up more than 30 percent in 2013 alone.

Retail: Staples to shut down 225 stores

Staples is desperately out to save money, said Taryn Luna in The Boston Globe. The office supply chain said it will close up to 225 stores by the end of next year in an effort to “slash $500 million in annual costs” and “reinvent itself in the face of intense Internet competition.” The cuts, which come on the heels of disappointing holiday sales and 40 other closures, “will reduce the number of Staples stores in North America by about 12 percent.”