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SAN FRANCISCO | Two former executives of a San Francisco-based bank that received federal bailout money have pleaded not guilty to fraud charges.

Ebrahim Shabudin, the former CEO of United Commercial Bank, and former senior vice president Thomas Yu entered their pleas Thursday in federal court.

They are the first executives of a bank that received funds from the Troubled Asset Relief Program to face criminal charges.

United Commercial Bank received $298 million in TARP money in 2008 during the height of the nation’s financial crisis. That money was lost when the bank was seized by regulators, shuttered and filed for bankruptcy the subsequent year.

Mr. Shabudin and Mr. Yu are accused of hiding loan losses from investors and regulators. They face up to 25 years in prison each, if convicted.


IMF still reviewing Athens aid program

The International Monetary Fund is still reviewing Greece’s compliance with its bailout agreement, an IMF spokesman said Thursday, as Athens faces a potential sovereign debt default.

“The IMF is in the process of completing the fifth review” on whether to proceed with the next loan installment under the agreement, spokesman Gerry Rice said.

The $11 billion tranche, under a rescue program financed by the IMF, the European Union and the European Central Bank, is seen as crucial for Greece to avoid running out of money to pay debts next month.

Asked when the aid could be provided, Mr. Rice referred to a recent joint communique from the so-called “troika” of lenders, quoting “most likely in early November,” contingent on the approval of eurozone authorities and the IMF executive board.

There is no date for the IMF board meeting on Greece, he added.


Delta expands comfort seating to domestic flights

ATLANTA | Delta Air Lines said Thursday it will create a class of higher-end coach seats on its U.S. fleet, matching a service it already offers on the bigger planes that fly overseas.

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