Re: Global settlement

Sen. Chuck Grassley, chairman of the Committee on Finance, today made the following comment on the finalization of the "global settlement" between Wall Street and the government over allegations of conflicts of interest in stock research.

"This looks like half a loaf. The documents emphasize that the $487 million in civil penalties won't be tax deductible or reimbursed from insurance policies -- a restatement of current law. Unfortunately, that's only half the story. The material made available to me so far indicates that similar limitations on tax deductibility and insurance reimbursement do not apply to the $387 million in disgorgement, the $432 million in independent research, and the $80 million in investor education. I'm concerned that the media coverage today might significantly overstate the after-tax cost and actual burden on Wall Street. I'm pleased that Senator Baucus and I are introducing legislation today that will greatly limit the ability of Wall Street to send part of today's $1.4 billion tab to the taxpayers."