Same shit, different year:
A U.S. judge has ordered that millions of dollars in leftover money from the landmark 2003 Wall Street stock analysts’ settlement go to the coffers of the U.S. government, because regulators and the banks have not found an adequate way to distribute it to investors.
An just what was that settlement:
It seems like yesterday that the stock research scandal threatened to destroy much of Wall Street. Six years ago, we discovered that research analysts at some of the big brokerages weren’t being completely forthright with their stock recommendations. If only our current financial crisis was so easy to solve.
Fallout from the Wall Street stock-research scandal resulted in firms having to pay more than $450 million to fund independent market research. Six years later, some $70 million remains of the original fund. But that money will soon dry up as a judge has ordered that the remaining funds be turned over to the Treasury Department.
How quaint. It is almost as if these guys have been corrupt for years and no one has cared. Some of the names sound familiar:
Prompted in part by abuses revealed by then-New York Attorney General Eliot Spitzer, 10 Wall Street titans including Citigroup Inc (C.N), Goldman Sachs (GS.N) and Bear Stearns, now
part of JPMorgan Chase & Co (JPM.N), agreed to the settlement.
Two former star analysts — Henry Blodget, formerly of Merrill Lynch, and Jack Grubman, formerly of Citigroup’s Salomon Smith Barney — also were part of the settlement.
Eliot Spitzer has been disgraced, the big firms are all on the dole, and the last I saw of Henry Blodget, he was fighting the good fight for Chrysler bondholders in the comments at Clusterstock. It seems he was appalled that there might have been some strong-arming going on in the negotiations.