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Merrill Lynch Finalizes Agreement With Securities and Exchange Commission
NEW YORK, March 17, 2003 — Merrill Lynch (NYSE: MER) today said it has finalized its previously announced agreement in principle with the Securities and Exchange Commission regarding an investigation into two 1999 transactions between Merrill Lynch and Enron.
Merrill Lynch said it entered into the settlement without admitting or denying wrongdoing to resolve the inquiry and put the matter behind it. The resolution concludes the SEC's investigation into Enron-related matters with respect to the company.
In this matter, Merrill Lynch, as always, has cooperated fully with regulators and required all of its employees to cooperate as well. Those who did not were terminated. As part of its effort to cooperate, Merrill Lynch informed the SEC about one of the transactions at a time when the firm believed the commission was unaware of the transaction.
Under the agreement, Merrill Lynch will pay a total of $80 million in disgorgement, penalties and interest. Merrill Lynch has recorded this payment in its fourth-quarter 2002 financial results, as it represents a subsequent event according to accounting principles.
Contact:
Mark Herr 212.449.8548
Mherr@exchange.ml.com
Bill Halldin 916.781.0657
whalldin@exchange.ml.com
