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07-29-2003, 02:43 PM
Two banks, J. P. Morgan Chase and Citigroup are going to pay $300 million in fines for their Enron related activities.
"But the bank settlements -- reached with the Securities and Exchange Commission and the Manhattan district attorney's office -- have a significance far beyond the issues in the Enron case. That is because, for the most part, the transactions between Enron and the banks met legal and accounting requirements while still leading to outcomes in the company's financial reports that regulators say were misleading."
"These two cases serve as yet another reminder that you can't turn a blind eye to the consequences of your actions,'' said Stephen M. Cutler, director of the SEC's enforcement division. ``Financial institutions may not look the other way when their clients use them to manipulate financial results"
We believe that the SEC should also strengthen its enforcement of Regulation U, which limits borrowing from banks to purchase stocks.
Read article
http://www.bayarea.com/mld/mercurynews/business/6408083.htm
"But the bank settlements -- reached with the Securities and Exchange Commission and the Manhattan district attorney's office -- have a significance far beyond the issues in the Enron case. That is because, for the most part, the transactions between Enron and the banks met legal and accounting requirements while still leading to outcomes in the company's financial reports that regulators say were misleading."
"These two cases serve as yet another reminder that you can't turn a blind eye to the consequences of your actions,'' said Stephen M. Cutler, director of the SEC's enforcement division. ``Financial institutions may not look the other way when their clients use them to manipulate financial results"
We believe that the SEC should also strengthen its enforcement of Regulation U, which limits borrowing from banks to purchase stocks.
Read article
http://www.bayarea.com/mld/mercurynews/business/6408083.htm