As expected, Bear Stearns settled with the Securities and Exchange Commission and the New York Stock Exchange over allegations that it enabled hedge fund clients to market time and late trade mutual funds. Two of the firm's units, its clearing arm and brokerage unit, are paying a total of $250 million, $160 million in restitution and $90 million in fines.

Regulators found phone records implicating supervisors and evidence of a market-timing trading desk Bear had set up.

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