June 2, 2006 |
A state judge has thrown out California's fraud lawsuit against brokerage firm Edward Jones & Co., in another defeat for Atty. Gen. Bill Lockyer's attempt to assert authority over mutual fund sales practices. Superior Court Judge Loren McMaster in Sacramento dismissed Lockyer's 17-month-old suit against St. Louis-based Jones last week, ruling that California's case conflicts with a federal law that gives U.S. regulators sole authority to set securities-industry disclosure rules.
May 24, 2006 |
Citigroup's Smith Barney brokerage unit has agreed to pay $98 million to settle claims on behalf of thousands of current and former brokers who said they were owed overtime pay and other reimbursements. The proposed settlement is the latest and largest by securities firms that claimed brokers were exempt from state and federal overtime laws because they are salaried, administrative employees.
April 27, 2006 |
A new judge has been assigned to the case of former star investment banker Frank Quattrone, but the government has yet to decide whether it plans to put him on trial for obstruction and witness tampering charges for a third time. "The only comment we have is we will be advising the judge about the status of the proceedings," Megan Gaffney, a spokeswoman for the U.S. Attorney's Office in Manhattan, said Wednesday. U.S. District Judge Lewis Kaplan has been assigned the case, she said.
April 17, 2006 |
The New York Stock Exchange said it was in talks regarding a "strategic transaction," and a source familiar with the situation said the London Stock Exchange was one of the parties to the discussions. The source spoke on condition of anonymity, and the two exchanges declined to comment on whether they were in talks. The news came just days after rival Nasdaq Stock Market Inc. snapped up a stake in the 300-year-old London exchange after its takeover offer of $4.2 billion was rebuffed.
March 25, 2006 |
The Securities and Exchange Commission on Friday threw out a lifetime securities industry ban by the NASD against Frank Quattrone, four days after a federal appeals court overturned the former star investment banker's 2004 conviction on obstruction and witness tampering charges. The SEC said the NASD, the securities industry's self-regulatory arm, "did not act in accordance with its own rules" in issuing the ban in November 2004.
January 20, 2006 |
Japanese government officials Thursday sharply criticized the Tokyo Stock Exchange for its inability to cope with a surge of stock sales triggered by an investigation of a popular Internet company's financial dealings. "A stock exchange that can't carry on trading simply doesn't deserve to exist," Economy Minister Kaoru Yosano said in a nationally televised news conference. "The exchange should make it a top priority to bring business back to normal."
January 12, 2006 |
Wall Street firms will pay their New York City workers a record $21.5 billion in bonuses for 2005 amid soaring profits, state Comptroller Alan Hevesi forecast Wednesday. The average bonus for the city's 174,000 investment bankers and other securities industry workers will rise 10% to $125,500, also a record, Hevesi said. Total bonuses will rise 15.5%, surpassing the previous record of $19.5 billion set in 2000.
January 4, 2006 |
The flat stock market of 2005 helped bring at least one benefit to corporate America: a decline in securities class-action suits, according to a study released Tuesday. The number of such suits dropped 17% to 176 last year, the lowest total since 1997, according to an annual report by Boston-based Cornerstone Research and Stanford Law School. The highest number in recent years, 239 suits, came in 1998.
December 28, 2005 |
The brokerage industry's chief regulatory group said Tuesday it collected a record $125.4 million in disciplinary fines this year, 21% more than in 2004, for violations including abuses in sales of mutual funds and variable annuities. The Washington-based NASD also said it filed 1,412 enforcement actions in 2005, up 1% from the previous year, and barred or suspended 737 people from the securities industry, down 12%. It closed 9,150 arbitration cases and 1,700 mediation cases.
March 31, 2005 |
The Securities and Exchange Commission has narrowed its probe of Los Angeles-based American Funds to the question of whether the firm overpaid brokerages for trades as a reward for mutual fund sales, according to people familiar with the inquiry. The fund giant already is fighting two other regulatory agencies over charges of improper practices.