Massachusetts Financial Services Co. is talking to the SEC, New Hampshire regulators and New York Attorney General Eliot Spitzer about a settlement including $200 million in restitution and penalties and another $100 million worth of reduced fees over the next several years, The New York Times reports today. The paper cites several sources close to the talks as its source of information.
The SEC is not interested in reduced fees, but Spitzer is pushing for it, according to the Times. If it reduced its fees, MFS, the nations oldest mutual fund company, will be the second firm to do so in the ongoing scandal. (See "Alliance Deal Sets Alarming Precedent: Spitzer Intent on Lowering Fund Fees," MME 12/22/03.)