S.E.C. Steps In as Fines Are Planned on 5 Firms

Article Abstract:

As the New York Stock Exchange continues to pursue an investigation of trading abuses by 'specialist firms' begun in 2000, the Securities and Exchange Commission has stepped in to help determine the amount of losses sustained by customers and the resultant fines that should be levied. The jockeying between the NYSE and the S.E.C. for regulatory dominance comes on the heels of the revelations about corporate governance at the NYSE which began with an investigation into the pay package of former Chairman Richard A. Grasso. New Chairman John S. Reed is planning to change the exchange's corporate governance to help eliminate conflicts of interest arising from having so many member-firm executives serve as corporate directors. He believes, however, that the NYSE should retain its regulatory powers and is in discussion with the S.E.C. about this matter.

Discipline, Stock-exchange, Stock exchanges, Powers and duties, New York Stock Exchange Inc., Market makers (Securities trading)

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Schwab Discloses Suspect Fund Trades

Article Abstract:

Discount broker Charles Schwab has revealed that it discovered evidence of improper trading of Excelsior Funds. The investigation revolves around activity of sales personnel who allegedly allowed hedge fund customers to trade after the stock market closed. It is not clear yet how this will impact differences between federal investigators, such as the SEC, and state attorneys general, the latter wanting stricter penalties for companies that have violated securities regulations.

Legal/Government Regulation, Security and Commodity Services, Securities & Commodities Services, Securities, Commodity Contracts, and Other Financial Investments and Related Activities, Securities industry, Mutual fund industry, Charles Schwab & Company Inc., United States Trust Company of New York, Spitzer, Eliot, Excelsior Funds

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S.E.C. Warns It May Act On Ex-Officer Of Citigroup

Article Abstract:

The Securities and Exchange Commission has sent a letter to Citigroup that warns the company that it will likely face a civil complaint against Thomas W. Jones, who had been in charge of the asset management division of the bank.

Financial Services, Finance and Insurance, DEPOSITORY INSTITUTIONS, Executive changes & profiles, Officials and employees, Financial services industry, Citigroup Inc., C, Jones, Thomas W.

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