On May 13, 2009, the U.S. Securities and Exchange Commission (“SEC”) approved a rule change that requires brokers to disclose alleged sales practice violations made by a customer against a securities broker in the body of a civil lawsuit or arbitration claim, even if that broker is not named as a defendant or respondent. The […]
Many investors suffered losses in 2008 because they owned Tobacco Settlement Bonds. These bonds, which are tax exempt, were sometimes marketed by brokers as “municipal bonds”. They lost up to 50% of their value as a result of Wall Street’s self-induced credit crisis. Other than their “tax-exempt” status, Tobacco Settlement Bonds have absolutely nothing in […]
Compelling pieces of evidence, including sworn statements from Bank of America, have been uncovered indicating that, during recent years, Wall Street brokerage firms conspired to cheat state and local governments and American taxpayers in the municipals markets. Municipal bonds are issued by state and local governments to raise funds for various public projects. Since the […]
The hoopla surrounding the presidential election and the promise of a new team in Washington does not change the reality that we are still mired in a seemingly unending financial mess. But, according to New York Times business columnist Gretchen Morgenson, the lack of transparency surrounding both Wall Street’s activities and the financial bailout present […]
The hoopla surrounding the presidential election and the promise of a new team in Washington does not change the reality that we are still mired in a seemingly unending financial mess. But, according to New York Times business columnist Gretchen Morgenson, President-Elect Barack Obama needs to signal investors and taxpayers that he will be looking […]
The loss of jobs on Wall Street is keeping many attorneys busy as the need for legal representation increases. Contracts are being terminated and litigated, severance benefits are being proposed and fights for customers are escalating. Terminated employees are negotiating new arrangements, forming their own broker/dealers or investment advisory firms and entering into various contracts […]
John Thain, Merrill Lynch’s Chief Executive, said earlier this week at a speech in Dubai that, of Merrill’s 61,000 employees, thousands would lose their jobs when Merrill is merged into Bank of America. As reported in the Financial Times by Simeon Kerr and Greg Farrell, Mr. Thain said that jobs would be lost in the […]
There have been various developments over the past several weeks which investors may consider relevant in allocating their resources or evaluating alternatives that are available to them. Some of the more significant developments include, but are not limited to, the following: The Bush Administration proposed a $700 billion bailout plan to purchase bad mortgage investments […]
Today, Beth Healy of the Boston Globe reported that Bank of America warned the State of California about problems in the auction-rate securities markets late in 2007 while the firm was still marketing auction-rate securities to individuals and other investors without disclosing such risks. Among other things, Bank of America warned the State of California […]
Today New York Attorney General Andrew Cuomo urged JP Morgan Chase, Morgan Stanley and Wachovia Securities to take immediate steps to settle their auction-rate securities problems. According to reports, Cuomo’s office has sent a letter to each of these firms strongly suggesting that they enter into settlements with regulators resolving their auction-rate securities problems on […]
