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Groklaw: IBM's Subpoenas to Analysts and Investors: Why? Why? Why?

Nov 13, 2003, 14:00 (6 Talkback[s])
(Other stories by Pamela Jones)

"On October 31, 2003, the SEC announced a settlement of enforcement actions involving conflicts of interest between brokerage firm analysts and investment banks:

"'The Securities and Exchange Commission announced today that the Honorable William H. Pauley III, United States District Judge for the Southern District of New York, approved the $1.4 billion global settlement of enforcement actions against ten of the nation's top investment firms and two associated individuals. The enforcement actions alleged undue influence of investment banking interests on securities research at brokerage firms. The enforcement actions and the proposed settlements were announced on April 28, 2003... The Court also entered separate Final Judgments as to each of the 12 defendants.

"Under the terms of the Final Judgments and Orders that Judge Pauley approved today, the ten firms and two individuals will pay a total of $894 million in penalties and disgorgement, consisting of $397 million in disgorgement and $497 million in penalties, which includes one firm's previous payment of $100 million in connection with its prior settlement with the states..."

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