Wall Street banks accept US$1.4bn penalty

Ten Wall Street banks have accepted record US$1.4bn penalties imposed by the Securities & Exchange Commission (SEC). Investigation headed by New York attorney general Eliot Spitzer stemmed from the release of emails from analysts describing their own share tips as ‘pieces of junk’. The penalties comprise US$900mn fine to be shared between SEC and 12 states that participated in the investigation, and US$450mn funding of independent stock research over five years and US$85mn for investor education. It is unclear whether investors who relied on the analysts will actually get anything.