The New York Stock Exchange announced yesterday that Bear Stearns has been fined $1.5 million in restitutions, for violating rules having to do with index arbitrage trading, and failing to supervise brokerage accounts and improper communication on the part of one of the firm's research analysts, according to MarketWatch.
Apparently, the trading violations happened back in July 2001, October 2002, and once again in May 2003. The firm's records were not up to standard, as they failed to report the trades in a timely fashion.
The Big Board reported that the firm also failed to supervise 10 foreign accounts, as the accounts were not researched.
"Neither the analyst's introductory comments nor any of his other statements on this Internet roadshow presented fair and balanced information regarding the potential risks and rewards of an investment in the offering," the NYSE said. NYSE did not disclose the analyst's name.