Alliance Capital is close to settling with New York Attorney General Eliot Spitzer, according to reports this morning.

"We have been in discussions with Alliance and in consultation with the [ SEC] regarding possible settlement," Paul Laraby, a spokesman for New York Attorney General Eliot Spitzer, told Reuters. The fine for the $427 billion fund shop could top $250 million – the largest settlement ever for any fund company, according to The Wall Street Journal.

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