trending Market Intelligence /marketintelligence/en/news-insights/trending/vg3s_isv9o51kks_5g2u3q2 content esgSubNav
In This List

Merrill Lynch fined for overcharging clients for residential MBS

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Merrill Lynch fined for overcharging clients for residential MBS

Merrill Lynch Pierce Fenner & Smith Inc. agreed to repay more than $10.5 million to its customers to settle SEC charges that it misled clients into overpaying for residential mortgage-backed securities.

In addition, Merrill Lynch will pay penalties of about $5.2 million. Merrill Lynch traders and salespeople convinced customers to overpay for RMBS by misstating the price Merrill Lynch paid to buy the securities, according to a press release issued by the SEC.

The SEC order also found that Merrill Lynch's RMBS traders and salespeople illegally profited from excessive and undisclosed commissions called mark-ups. The profits, in some cases, were more than twice the amount the customers should have paid.