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Post date: August 25 2003

New York Signs Historic Agreements With The Nation's Leading Brokerage Firms

As part of the $1.4 billion global resolution of conflicts of interest at Wall Street investment firms, Attorney General Spitzer today stated that his office has entered into a settlement agreement with each of the banks that was investigated.

When the "global settlement" was announced in April of this year, each of the ten investment banks signed an agreement only with the state or states that had primary responsibility for investigating it, as well as with the SEC, NYSE and NASD. New York was the lead state for the investigation of Citigroup Global Markets and Morgan Stanley, and had previously reached a landmark settlement with Merrill Lynch in May 2002.

Under today's settlements with the seven remaining investment banks, New York will receive a total of $12.4 million, most of which it has already collected.

New York is believed to be the first state to have signed with all of the banks, and to have collected almost all of its civil penalties. The investment banks have not yet paid any amounts called for under the global resolution to the SEC or self-regulatory organizations, as the federal portion of the agreement is still under federal court review.