COLUMBUS, Ga. -- Synovus Financial Corp. said its brokerage subsidiary has agreed to pay a $200,000 civil penalty to the Securities and Exchange Commission to settle charges of violating municipal bond-trading rules.
The settlement, in which Synovus also agreed to hire a consultant to review its compliance procedures, ended an investigation into trades that a former president of Synovus Securities Inc., Clark L. Reed Jr., handled for six clients between 1988 and 1991.
Mr. Reed separately agreed to pay a $50,000 penalty and end all dealings with securities brokers, dealers, and investment companies, though he is allowed to apply for reinstatement after 18 months.
Mr. Reed executed the trades through an intermediary rather than through a market maker as required by SEC rules, said Synvous executive vice president G. Sanders Griffth 3d.
