CSFB, Citigroup Fines SeenNov 16, 2002 | Bloomberg News
Credit Suisse First Boston and Citigroup Inc.'s Salomon Smith Barney unit would face fines of about $200 million each as part of a plan by state and federal regulators to settle conflict-of-interest probes, people familiar with the situation said.
Regulators are scheduled to meet Monday in New York to try to determine exact penalties before presenting them as part of settlement talks. The other companies among the 12 under investigation may be asked to pay $25 million and $150 million each, the people said.
Imposing penalties may end a process that became public in April when New York Attorney General Eliot Spitzer released e- mails showing Merrill Lynch & Co. analysts privately disparaged stocks they promoted to investors. Citigroup's penalties could be stiffened with the disclosure that former Salomon analyst Jack Grubman may have raised his ratings on AT&T Corp. to gain chairman Sanford Weill's help in getting Grubman's twins into preschool.
Merrill in May agreed to pay $100 million to resolve allegations by Spitzer.
Merrill Lynch and CSFB declined to comment. Citigroup did not return a call.