Telephone: (334) 242-2984
or 1-800-222-1253 Fax: (334) 242-0240
Email: asc@asc.alabama.gov Website: www.asc.state.al.us
with Deutsche Bank Securities and Thomas Weisel Partners
MONTGOMERY, AL (August 26, 2004) – Under the terms
of settlements announced today between securities regulators and Deutsche Bank
Securities Inc. and Thomas Weisel Partners LLC, ALABAMA stands to receive more than
$400,000 upon final
acceptance of the terms of the agreement said Joseph P. Borg, Director of the
Alabama Securities Commission. The settlements result from allegations of
conflicts of interest at brokerage houses where analysts recommended stocks due
to improper influence from their investment banking colleagues.
Borg made the announcement following
investigations of the two firms by the California Department of Corporations,
the U.S. Securities and Exchange Commission, NASD, Inc., and the New York Stock
Exchange. The settlements are related
to the April 2003 Global Settlement that ten other investment banks reached
with the state, federal and industry regulators.
Deutsche Bank will pay to all states and the SEC a total of $87.5 million: $25 million in disgorgement, $25 million as a penalty for various conflicts of interest, $25 million to fund independent research, $5 million to fund and promote investor education, and $7.5 million for failing to promptly produce e-mail and thereby delaying by over a year the investigation as to Deutsche Bank. Thomas Weisel Partners will pay a total of $12.5 million: $5 million in disgorgement, $5 million as a penalty for various conflicts of interest, and $2.5 million to fund independent research.
Borg said the investigations of Deutsche Bank and Thomas Weisel Partners, together with the 2003 Global Settlement, are part of a comprehensive regulatory effort to reform the relationship between investment banking and research and to manage appropriately conflicts of interest. “Today’s settlements represent a significant step in our continuing efforts to ensure that investors are treated fairly and provided with objective research,” Borg said.
The money received for
Under the terms of the settlement,
Deutsche Bank is also required to distribute $2.5 million to the Investor
Protection Trust (IPT), which will use the money to fund investor education
initiatives on the state and national levels. The IPT is an established
charitable organization with experience handling settlement funds and a history
of investor education successes.
The settlements were negotiated by
The Alabama Securities Commission was
one of the lead states in the Wall Street investigation, which previously
returned $5.5 million to
- more -
Potential investors can contact the Alabama Securities Commission for inquiries regarding securities broker-dealers, agents, investment advisors, investment advisor representatives, financial planners, the registration status of securities, to report suspected fraud, or obtain consumer information:
Telephone: (334) 242-2984
or 1-800-222-1253 Fax: (334) 242-0240
Email: asc@asc.alabama.gov Website: www.asc.state.al.us
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If you have
questions or require more information contact:
Daniel G. Lord
Education and Public Affairs
Manager