NEW YORK -- The Securities and Exchange Commission plans to pursue civil charges against Bankers Trust New York Corp. in connection with its sale of derivatives to some corporate clients, sources familiar with the situation said.
The SEC authorized an enforcement action against Bankers Trust after investigators convinced the agency's commissioners that a preliminary inquiry showed enough cause to purse civil charges that the bank violated securities laws, the people said.
No charges have been filed against Bankers Trust. An SEC spokesman declined to comment on the agency's investigation.
Bankers Trust spokesman Douglas Kidd, a managing director, said investigations of the bank's leveraged derivatives business by various regulatory authorities continue, "and we are cooperating with them."
When the SEC decides to pursue an enforcement action against a company, it can negotiate a settlement in which the company settles the claims without admitting any guilt. In such cases, the company agrees to refrain from the practices under scrutiny.
A settlement of the SEC probe would follow an out-of-court settlement last month of a $73 million derivative-related lawsuit filed against Bankers Trust by Gibson Greetings Inc. Gibson agreed to drop its suit in exchange for paying $6.18 million, or 30 percent, of the roughly $20 million it owed the bank.