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Senators: Settlement not tough enough

Wednesday, May 7, 2003 | 9:43 a.m.

WASHINGTON -- Top executives of Wall Street securities firms must be held personally accountable for misleading investors with biased stock research, senior U.S. senators said today.

At a hearing on last week's $1.4 billion settlement with Citigroup Inc. and nine other securities firms, Senate Banking Committee Chairman Richard Shelby told securities regulators today that the agreement's record fines and structural changes didn't go far enough.

"Without holding executives and CEOs personally accountable for the wrongdoing that occurred under their watch, I do not believe that Wall Street will change its ways or investor confidence will be restored," the Alabama Republican said.

The 10 securities firms agreed to pay $1.4 billion to settle charges that their analysts published misleading stock research in a bid to win investment-banking business. The settlement was the biggest in history for violating securities laws.

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