Settlement nets $4 million for securities agency. (Inside Business).

Arkansas stands to get $4 million from a settlement last week between 10 Wall Street investment firms and securities regulators.

It's the state's part. of a $1.4 billion agreement that arose from allegations of conflict of interest at brokerage houses where analysts recommended stocks in. order to gain business for their investment banking colleagues.

"This historic agreement represents the-closing of a sad chapter in the history of financial markets," said Arkansas Securities Commissioner Michael Johnson. "The industry reforms agreed upon in this settlement will provide for more objective research and stronger protection for investors. It's our hope that this settlement will change the way business is done on Wall Street and that as a result, wary and mistrustful investors will return to our markets."

The money the state gets under the settlement will be used for investor education and operations of the Securities Department.

The 10 firms involved in the settlement are:

* Bear Stearns & Co.

* Credit Suisse First Boston LLC 

* Goldman Sachs & Co.

* Lehman Brothers Inc.

* J.P. Morgan Securities Inc.

* Merrill Lynch Pierce Fenner & Smith Inc.

* Morgan Stanley & Co.

* Citigroup Global Markets Inc. f/k/a Salomon Smith Barney Inc.

* UBS Warburg LLP 

* U.S. Bancorp Piper Jaffray Inc.

The settlement requires that certain investment analyses be made public within 90 days after each quarter so investors can compare the performance of analysts. Also, brokerages can no longer give executives and directors preferential access to initial public offering shares of companies they've sought as investment banking clients.