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Non-Tech : Auric Goldfinger's Short List -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (10852)	12/21/2002 12:11:37 AM
From: StockDung	Respond to of 19428

Ex-Salomon analyst Grubman to pay $15 mln fine NEW YORK, Dec 20 (Reuters) - Jack Grubman, the beleaguered former telecommunications analyst for Salomon Smith Barney, has settled with regulators for $15 million and a lifetime ban from the securities industry, a spokesman for the New York State attorney general's office said on Friday. Grubman, who resigned in August amid harsh criticism over poorly performing stock picks, agreed in principle to the terms, the spokesman said. Critics had accused him of tailoring his research to help Salomon win underwriting mandates. Grubman's deal is a regulatory agreement that includes the New York State Attorney General Eliot Spitzer's office, the U.S. Securities and Exchange Commission and NASD, the spokesman said. It has yet to be finalized, he added. Grubman, who flaunted his close ties to executives like former WorldCom Chief Executive Bernie Ebbers, was one of Wall Street's most well-known and highly paid analysts. Spitzer, who worked with the SEC, NASD and other states to cobble a $1.4 billion settlement with 10 investment banks to curb allegedly abusive business practices, had not ruled out going after individual analysts for wrongdoings. The settlement, in which Salomon's parent, Citigroup Inc. <C.N>, agreed to pay $300 million, was announced on Friday. Grubman's tentative agreement is not part of the broader accord. Grubman left Salomon with a forgiven $19 million loan, $12 million of cashed stock options and $1.2 million in payments spread over 18 months. Grubman's lawyer did not return a call for comment. Spitzer in September sued a number of past and current telecom executives, including Ebbers, saying they made a total of $28.2 million by "profiteering" in hot initial public offerings. Spitzer said Salomon doled out shares of hot IPOs to the executives in exchange for investment banking business, a practice known as "spinning." As part of the global settlement announced on Friday, spinning will be prohibited. Spitzer said Grubman was at the center of the arrangement, but did not file charges against the analyst or Salomon. 12/20/02 18:40 ET