FleetBoston Financial Corp.’s Fleet
Specialist arm is ready to pay between $30 million and $50
million to settle charges that it traded improperly ahead of its
clients, the Wall Street Journal reported, citing an unidentified
person familiar with the matter.
The unit is one of five specialist firms that supervise the
buying and selling of stocks on the floor of the New York Stock
Exchange; the five have had several meetings with regulators this
week and meet again today to try to agree on settlements by
Sunday, the newspaper said.
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The exchange and the Securities and Exchange Commission have
set a Sunday deadline for settlements or the filing of civil
charges, the Journal said.
Discussions might still break down, but some specialists say
they might announce agreements in the next few days, the paper
said.
A settlement embracing all the specialists is likely to
include at least $150 million in fines and restitution to
investors, in return for which the firms wouldn’t be compelled to
admit or deny the allegations, the Journal said.
The other specialists are LaBranche & Co.; Van Der Moolen
Specialists USA; Spear, Leeds & Kellogg; and Bear Wagner
Specialists. Officials of the five firms all declined to comment,
as did a spokesman for the exchange, the paper said.
Bloomberg News
