Skip navigation

Brokerage Chiefs in Spitzer’s Sights

When NY AG Eliot Spitzer announched the 1.4 bilion settlement of the securities conflict, his office warned that it was "the beginning, not the end."

When New York Attorney General Eliot Spitzer announced the $1.4 billion settlement of the securities conflict of interest case in April, his office warned that it was "the beginning, not the end." Wirehouses are finding out, in a big way, that he wasn’t kidding.

The New York Post is reporting that the feds have issued information requests to more than 50 brokerage heads, including Citigroup CEO Sanford Weill and Morgan Stanley head Phil Purcell. Investigators are seeking "internal documents," including interoffice emails and memos. The primary filers were the NASD, the SEC and the New York Stock Exchange.

The continuing investigation is said to be increasing the scrutiny on analysts involved in both research and banking. The notices are the first direct requests made of those individuals in charge, who, so far anyway, have eluded prosecution. All 10 of the firms named in the settlement received notifications, according to the Post.

Spitzer’s office was not available for comment, nor were executives at Morgan Stanley and Citigroup.

TAGS: Archive News
Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.