Friday, Dec. 20, 2002 | 10 a.m.
ALBANY, N.Y. -- The nation's largest brokerages have agreed to pay $975 million in fines to settle conflict-of-interest allegations, one of the largest fines ever levied by securities regulators, regulators said today.
The settlement calls for 10 firms, including Citigroup, Goldman Sachs and Credit Suisse First Boston, to sever the links between research and investment banking and to fund independent stock research for investors that would complement their own analysts' work.
The firms will pay fines from $325 million, by Citigroup's Salomon Smith Barney, to $50 million each by Goldman Sachs, JP Morgan, Lehman Brothers, Deutsche Bank and UBS. The firms also will pay $450 million over five years to pay for independent research for investors and $85 million for a nationwide investor education program.
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