SEC Fines Wall Street Firms $13M

Law360, New York (May 31, 2006, 12:00 AM EDT) -- The U.S. Securities and Exchange Commission has fined 15 Wall Street firms more than $13 million for auction rate securities violations that allegedly occurred between January 2003 and June 2004.

Those penalized include Goldman Sachs & Co., J.P. Morgan Securities Inc., Lehman Brothers Inc. and Merrill Lynch.

The SEC said the violations include submitting or changing orders after auction deadlines and giving some customers information that gave them an advantage over others in bidding.

This means that some customers were favored over other customers, and, in...
To view the full article, register now.