SEC Postpones Vote on Brokerage Settlement

The Securities and Exchange Commission postponed a vote Tuesday on a proposed legal settlement with 10 major brokerage firms over allegedly biased stock research, according to people familiar with the matter.

The five commission members received a lengthy presentation in the case and may vote this week, sources said.

A deal would resolve an SEC probe into whether analysts’ stock advice was compromised by their attempts to lure corporate financing business to their firms. Various state and federal regulators have been investigating possible analyst conflicts.

The SEC vote would mark one of the final hurdles toward completing a $1.4-billion “global” settlement, and it has been closely watched by lawmakers and others.

There are several sensitive issues involved in the case. One is whether the firms could deduct from their taxes a large chunk of the $1.4 billion they would pay. Another is whether the companies could be reimbursed for those payments from their insurance companies.

-- Walter Hamilton