SEC Fines Merrill Lynch for Role in Enron; Investment House to Pay $80 Million to Settle Charges It Helped Manipulate Accounting

The Washington Times (Washington, DC), March 18, 2003 | Go to article overview

SEC Fines Merrill Lynch for Role in Enron; Investment House to Pay $80 Million to Settle Charges It Helped Manipulate Accounting


Byline: Patrice Hill, THE WASHINGTON TIMES

The Enron Corp. scandal came home to Wall Street yesterday as the Securities and Exchange Commission levied one of its largest penalties to date against Merrill Lynch & Co. to settle charges that it helped Enron manipulate its books.

Wall Street's biggest investment house agreed to pay an $80 million penalty, which is to be mostly returned to shareholders as partial restitution for $60 billion in investment losses, and said it will not participate in stock-manipulation schemes again.

"This action is a message to all who would help a reporting company commit fraud," said SEC Chairman William H. Donaldson, the former head of a top Wall Street firm, announcing his first major enforcement action against former colleagues. The complaint also charges four senior Merrill Lynch executives with aiding Enron's securities fraud.

Mr. Donaldson said the practices targeted in the complaint, helping companies manufacture earnings through complex and devious financial transactions, were widespread on Wall Street during the past decade and must be snuffed out if investors are to regain confidence in the markets.

"We will bring the full weight of our enforcement arsenal" against erring firms and employees, he said. "Our commitment to protect investors demands nothing less."

Two other top investment banks, Citigroup and J.P. Morgan, have also been implicated in investigations of the Enron deals by the SEC, Justice Department and congressional committees in the past year. Mr. Donaldson said more enforcement actions are likely to arise from those investigations.

The SEC is also negotiating a global settlement with state securities regulators to disgorge an additional $1 billion from Wall Street firms and to prohibit the deceptive financial practices that led to a massive wave of corporate scandals last year. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

SEC Fines Merrill Lynch for Role in Enron; Investment House to Pay $80 Million to Settle Charges It Helped Manipulate Accounting
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.