By the Athonian Stampel
Newouper (Reuters) -Piper Sandler and Stifel Finance on Wednesday asked the judge to release them from “huge” restrictions on the global decision of the US Securities and Exchange Commission more than two decades ago with 12 investment banks regarding analysts’ conflicts.
The $ 1.5 billion neighborhood in 2003 and 2004 referred to the scandal over analysts who are publishing positive research to help Citigroup, Goldman Sachs, Jpmorgan Chase, Morgan Stanley, the unstable bear Sterns and the Lehmann Business Business Business.
Submitting to the Federal Court in Manhattan, Pepper and Stifel said they should not be obliged with claims in related decree for consent, while rivals who are not subject to the decree are considered to be loosening SEC standards in 2015.
The decree imposed various restrictions, including research and investment banking units physically separated, with “fiery ideas” to prohibit most communications between them.
Pepper and Stifel said different treatment made it difficult for the match with other banks in the middle market, as well as large banks that are bound by the neighborhood but have much larger customer bases and are better known globally.
They also said the decree damages the public interest because the research may have different protection depending on which bank has issued, and smaller companies may fight to collect capital because the cost of compliance means that some banks cannot afford to provide research coverage.
“The consent’s decree has achieved its goal,” Pepper and Stifel said.
A SEC spokesman declined to comment.
Pepper is based in Minneapolis, and Stifel is based in St. Louis. They are the appropriate heirs of US Bankorp Pepper Affrey and Thomas Weelsel Partners, the smallest investment banks in the SEC neighborhood.
The neighborhood was designed mainly by former Public Prosecutor in Yorkyork, Eliot Spitzer, addressing alleged conflicts by analysts such as “Henry Blodg” by Citigroup, Jackackman and Merrill Lynch.
The cases are the SEC against the US Bankorp Pepper Affrey, the US District Court, the Southern District of Newouort, no. 03-02942; and a sec against Thomas Weelsel Partners DOO in the same court, no. 04-06910.
.
Source link
