Banks Meet With SEC Regulators to Discuss Settlements

By Kyle Chezum Updated on 12/2/2010

12/02/2010

Several major banks have met with regulators from the Securities and Exchange Commission to discuss settlements related to the mortgage backed securities mess that has stung many Wall Street entities in one way or another.  The talks are preliminary and may accomplish nothing, sources warn, but it’s an important step toward resolution and a sign that the SEC is ready to take action.

Citigroup Inc., Deutsche Bank AG, J.P. Morgan Chase & Co., Morgan Stanley and UBS AG are among the banks that have begun negotiations with the SEC.  Executives at most of these banks are likely chiefly concerned with avoiding a major public legal battle, such as that which cost Goldman Sachs over $550 million in July.

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