MINNEAPOLIS, Dec. 30 /PRNewswire-FirstCall/ -- U.S. Bancorp Piper Jaffray
(Piper Jaffray), today announced that it has reached an agreement in principle
with federal and state regulators, resolving an industry-wide review into
alleged analyst conflicts of interest. Piper Jaffray is one of twelve
securities firms involved in the matter. A formal settlement agreement will
follow, pending final resolution of terms.
Under the terms of the settlement, Piper Jaffray would agree to pay
$25 million to resolve regulators' claims, and would pay $1.5 million annually
for five years to fund a third-party research product to be distributed to
investors. In addition, Piper Jaffray would agree to make structural changes
relating to its research and investment banking groups.
"Since this process began, our regulators and we have shared the goals of
reinforcing equity research independence, bringing about progressive changes
to various industry practices and restoring confidence in the capital markets
system," said Andrew Duff, president and chief executive officer of Piper
Jaffray. "We believe this settlement will accomplish these goals."
About Piper Jaffray
U.S. Bancorp Piper Jaffray, a subsidiary of Minneapolis-based
U.S. Bancorp (NYSE: USB), is a focused securities firm comprised of three
divisions: Equity Capital Markets, Fixed Income Capital Markets and Private
Advisory Services. The firm provides a full range of investment products and
services to individuals, institutions and businesses. The firm has over 120
offices in 24 states across the country. The Equity Capital Markets Division
focuses on the needs of growth companies in the health care, technology,
financial institutions, consumer and communications growth sectors. The firm
has a national reputation for its expertise in fundamental research and equity
and debt financing. The Fixed Income Capital Markets business provides bond
issuers, individual investors and institutional investors expertise in
investment banking, underwriting, trading, sales and research. The firm offers
innovative solutions in corporate and government debt financings with
particular expertise in corporate, health care/hospitals, real estate, higher
education and government debt. The Private Advisory Services division
financial advisors provide guidance in retirement planning, education
planning, estate planning and wealth accumulation. Investors select from a
wide array of products, including fee-based products, stocks, bonds, mutual
funds, annuities, insurance and trust services. U.S. Bancorp offers a
comprehensive range of financial solutions through U.S. Bank, U.S. Bancorp
Asset Management, U.S. Bancorp Investments and U.S. Bancorp Piper Jaffray. For
more information on U.S. Bancorp Piper Jaffray, visit www.piperjaffray.com .
Additional information is available upon request.
SOURCE U.S. Bancorp Piper Jaffray