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Global settlement
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The Global Settlement was a legal settlement reached between Securities and Exchange Commission Chairman Harvey Pitt, New York Attorney General Eliot Spitzer, North American Securities Administrators Association President Christine Bruenn, NASD , New York Stock Exchange Chairman Richard Grasso, and state securities regulators with the nation's top investment firms to resolve issues of conflict of interest at brokerage firms. According to the SEC, "The 'global settlement' concluded a joint investigation begun in April (2002) by regulators into the undue influence of investment banking interests on securities research at brokerage firms." The settlement decision was published on December 20, 2002.
The total fine was $1.435 billion.
| Name Of Firm | Retrospective Relief ($ millions) |
Independent Research ($ millions) |
Investor Education ($ millions) |
|---|---|---|---|
| Bear Stearns & Co. LLC | 50 | 25 | 5 |
| Credit Suisse First Boston Corp. | 150 | 50 | 0 |
| Deutsche Bank | 50 | 25 | 5 |
| Goldman Sachs | 50 | 50 | 10 |
| J.P. Morgan Chase & Co. | 50 | 25 | 5 |
| Lehman Brothers, Inc. | 50 | 25 | 5 |
| Merrill Lynch & Co., Inc. | 100* | 75 | 25 |
| Morgan Stanley | 50 | 75 | 0 |
| Salomon Smith Barney, Inc. | 300 | 75 | 25 |
| UBS Warburg LLC | 50 | 25 | 5 |
| Total: | 900 | 450 | 85 |
* Payment made in prior settlement of Research Analyst conflicts.