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Day: August 4, 2016

Indiana Fines Bank Who Had Already Settled with SEC for $267 Million

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A large bank agreed to pay $950,000 to the State of Indiana to settle charges that it failed to disclose that it favored proprietary products in its private banking and managed account programs.  The Indiana Securities Division also charges that the respondent failed to disclose that it favored third party funds that paid affiliates certain placement agent fees. The fine relates to selling activities to clients in Indiana.  The settlement follows a $267 Million settlement with the SEC late last year concerning the same set of facts (See http://blog2.cipperman.com/2015/12/large-bank-to-pay-267-million-for-investing-in-proprietary-funds/).

OUR TAKE: Just when you thought you had finished writing checks to regulators, the state regulators decide they also want their pound of flesh.  Add 50 state securities regulators to the SEC, FINRA, DoL, CFTC, and the OCC who want a piece of financial services regulation and the revenue from resulting fines and penalties.