Posts belonging to Category Barclays

Reverse Convertibles and Similar Structured Products are “Unsafe at any Speed”


Banks sold more than $6 billion of reverse convertible notes last year, promising income investors returns of up to 64 percent in this historically low interest rate environment; however, reverse convertibles lost money, on average, according to a recent InvestmentNews articles entitled “Hot new asset class has ‘failed on all counts.’” In fact, reverse convertibles […]

Proposed Changes to New York Law Would Make Wall Street More Accountable


Wall Street may face a wave of lawsuits under an expanded version of the Martin Act, New York’s securities anti-fraud statute, if the newly elected Governor of New York has his way, according to a Wall Street Journal Deal Journal blog entitled, “And the Next Mortal Threat to Wall Street Is’”.

Despite Some Cracks in the Armor, Most of Wall Street Continues Business as Usual with No Regrets


Given the disdain that surveys show most people have for Wall Street, it may not be all that surprising to see some Wall Street insiders jumping on the bandwagon. In her New York Times Dealbook article, “Cracks Emerge in Wall St.’s Unity,” Heidi N. Moore says that the unity of top Wall Street executives appears […]

Bank of America Principal Protected Notes May Create More Problems for Wall Street Firms


The financial crisis and recent bear market have caused many investors to become more concerned about safety of principal. The investment industry has taken advantage of that concern by creating so-called “principal protected” notes and pushing them hard on retirees and others in need of safe, steady income.

Judges Begin to Question “Sweetheart” Securities Regulatory Settlements


Some judges are starting to question lenient settlement deals proffered by Wall Street firms and their arguably captive regulator, the SEC, according to an August 19, 2010 article in the Wall Street Journal by David Weidner called “In Search Of Justice for Wall (Street).” Two U.S. District Court Judges, Jed S. Rakoff and Ellen Segal […]

FINRA Investigates CDO Sales Practice Abuses by Morgan Stanley, Barclays and Credit Suisse


The Financial Industry Regulatory Authority (FINRA) is investigating possible sales practice violations (e.g., misrepresentations and omissions) by Morgan Stanley, Barclays, and Credit Suisse in pitching collateralized debt obligation securities (CDOs) to institutional investors, according to a July 23, 2010 Reuters article by Steve Eder and Leslie Gevirtz, “FINRA probes M Stanley, Barclays, Credit Suisse.”