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Municipal Securities Underwriters Pay a Total of $325,000 in Fines Ready to Announce with Confidence?

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GS Goldman Sachs was fined $25,000 for violations of Rule G-36 of the Municipal Securities Rulemaking Board. The fine is a minor financial penalty and does not directly reflect on the company's overall business performance. JPM J.P. Morgan Securities Inc. was fined $25,000 for violations of Rule G-36 of the Municipal Securities Rulemaking Board. This is a regulatory fine and does not indicate a negative outlook on the company's operations. MS Morgan Stanley & Co. Incorporated was fined $10,000 for violations of Rule G-36 of the Municipal Securities Rulemaking Board. The fine is a minor regulatory penalty and does not reflect on the company's overall financial health. BAC Commerce Capital, a division of Commerce Bank, N.A., was sanctioned by the OCC for violations related to municipal securities underwriting. While not a direct fine on Bank of America, it indicates regulatory scrutiny in the banking sector. PB PaineWebber Incorporated was fined $25,000 for violations of Rule G-36 of the Municipal Securities Rulemaking Board. This fine is a regulatory penalty and does not necessarily reflect a negative business outlook. PRU Prudential Securities Incorporated was fined $25,000 for violations of Rule G-36 of the Municipal Securities Rulemaking Board. The fine is a regulatory penalty and does not indicate a negative sentiment towards the company's broader operations. RJF Raymond James and Associates was fined $10,000 for violations of Rule G-36 of the Municipal Securities Rulemaking Board. This is a minor regulatory fine and does not reflect on the company's overall business. SMBC Smith Barney Inc. was fined $25,000 for violations of Rule G-36 of the Municipal Securities Rulemaking Board. This is a regulatory penalty and does not necessarily imply a negative business outlook. STT SunTrust Capital Markets, Inc. was fined $10,000 for violations of Rule G-36 of the Municipal Securities Rulemaking Board. The fine is a minor regulatory penalty and does not reflect on the company's overall financial performance. BE Bear, Stearns & Co. Inc. was fined $25,000 for violations of Rule G-36 of the Municipal Securities Rulemaking Board. This is a regulatory fine and does not necessarily reflect a negative outlook on the company's operations. MLI Merrill Lynch, Pierce, Fenner & Smith Inc. was fined $10,000 for violations of Rule G-36 of the Municipal Securities Rulemaking Board. This is a minor regulatory penalty and does not reflect on the company's overall business. PNC PNC Capital Markets, Inc. was fined $10,000 for violations of Rule G-36 of the Municipal Securities Rulemaking Board. The fine is a minor regulatory penalty and does not reflect on the company's overall financial performance.

Municipal Securities Underwriters Pay a Total of $325,000 in Fines Ready to Announce with Confidence? Washington, D.C.--(Newsfile Corp. - September 11, 2026) - The Securities and Exchange Commission announced today that NASD Regulation Inc. censured and fined 21 securities firms for violations of Rule G-36 of the Municipal Securities Rulemaking Board. At the same time, the Comptroller of the Currency sanctioned a division of a bank for similar violations.* These proceedings resulted from a coordinated effort by the SEC,

NASD Regulation, Inc. and the OCC.

Rule G-36 requires firms underwriting municipal securities offerings to send the official statements from those offerings to the MSRB within one day of receiving the information from the issuer, and in no case later than 10 days from the date of the agreement to purchase the securities. The official statement is then placed in the Board’s Municipal Securities Information Library, and is available to the public.

Chairman Arthur Levitt said, “Today’s enforcement actions are a wake-up call to municipal securities underwriters. The lapses here are particularly unfortunate because they are so widespread, involving every category of municipal underwriter, from national and regional securities firms to a bank. Rule G-36 is an important investor protection rule. The requirements of the rule enhance the quality of disclosure, and improve the overall integrity and efficiency of the municipal securities market. I hope that today’s actions will remind market participants that the information is important and that firms need to have procedures in place to comply with the MSRB rules.”

The SEC, NASD Regulation Inc., the OCC, the Federal Reserve Board and the Federal Deposit Insurance Corporation share responsibility for enforcing the MSRB rules.

*See attached list

Firms Sanctioned by NASD Regulation, Inc.

Amount

Bear, Stearns & Co. Inc.

$25,000

First of America Securities, Inc.

$10,000

First Southwest Company

$10,000

First Union Capital Markets Corp.

$10,000

Goldman, Sachs & Co.

$25,000

J.P. Morgan Securities Inc.

$25,000

Merrill Lynch, Pierce, Fenner & Smith Inc.

$10,000

Miller, Johnson & Kuehn, Inc.

$10,000

Morgan, Keegan & Co., Inc.

$10,000

Morgan Stanley & Co., Incorporated.

$10,000

Oppenheimer & Co., Inc.

$10,000

PaineWebber Incorporated.

$25,000

Piper Jaffray Inc.

$10,000

PNC Capital Markets, Inc.

$10,000

Prudential Securities Incorporated.

$25,000

Raymond James and Associates

$10,000

Seattle-Northwest Securities Corp.

$10,000

Smith Barney Inc.

$25,000

Stone & Youngberg, LLC.

$10,000

SunTrust Capital Markets, Inc.

$10,000

Sutro & Co. Inc.

$25,000

Bank Sanctioned by OCC

Amount

Commerce Capital, a Division of Commerce Bank, N.A.

$10,00

Source: Newsfile SEC Press Digest

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