Posts belonging to Category Credit Suisse

Merrill Lynch and Credit Suisse Fined for Misrepresenting Important Facts about Mortgage-Backed Securities to Investors


The Financial Industry Regulatory Authority (FINRA) has fined Credit Suisse Securities (USA) LLC $4.5 million, and Merrill Lynch $3 million. The fines arise out of FINRA’s findings that the firms misrepresented historical delinquency rates in connection with the residential subprime mortgage securitizations (RMBS) that the firms underwrote and sold. Upon learning of the errors, Merrill […]

Are Brokerage Firms Really the Trusted Financial Advisers that Their Advertisements Claim that They Are?


Expecting licensed professionals who provide investment advice to act in their clients’ best interests “should be a basic tenet of the business,” but brokerage firms and their brokers don’t want that fiduciary yoke, says Karen Blumenthal in her InvestmentNews article, “When Your Adviser Can’t Be Trusted.” Moreover, they don’t want the public to know that […]

Victims of Investment Malpractice or Other Financial Misconduct During the Recent Financial Crisis May Be on the Verge of Losing Legal Rights


If you are an investor who lost money in the financial crisis, your stockbroker or investment advisor may owe you money. There are a variety of legal claims that can be brought for investment malpractice, ranging from fraud and misrepresentation to making unsuitable investment recommendations. But there are also legal deadlines for bringing such claims, […]

Wall Street Whistleblower Program Already Paying Off


The new whistleblower program that pays big cash rewards for tips about investment fraud has already resulted in a large number of high quality tips to the SEC, according to a news story this week on CNBC. According to the report, the SEC expects to receive 30,000 tips this year?just one year after the program […]

It’s Business as Usual on Wall Street – Paychecks Reach All-Time Highs


Wall Street apparently hasn’t learned anything from the recent financial crisis that has brought the U.S. economy to its knees. Wall Street publicly traded companies paid out a record $135 billion in compensation and benefits last year, according to a Wall Street Journal article by Aaron Lucchetti and Stephen Hough titled “On Street, Pay Vaults […]

Are Wall Street Banks Concealing Their True Exposure to Mortgage Securities Problems


Bank of America has agreed to pay $2.6 billion to settle charges that Countrywide (which BofA acquired) made material misrepresentations about home loans it sold to Fannie Mae and Freddie Mac, according to articles in the New York Times by Gretchen Morgenson (“$2.6 Billion to Cover Bad Loans: It’s a Start”) and by Steve […]

Large Investors Who Have Sustained Losses on Auction Rate Securities Investments Need to Take Action


While many investors who lost money when the auction rate securities market collapsed in 2008 have now been made whole by regulatory settlements and redemptions, others have not been as fortunate and are still holding on to illiquid securities. Because regulatory settlements focused on the worst offenders in the industry, not all firms that sold […]

Are Wall Street Banks Making Employees “Scapegoats” for the Firms’ Misconduct


Brazilian investigators cracking down on income-tax dodging and crimes against the Brazilian financial systems are focusing on Merrill Lynch, Credit Suisse, and UBS, who, they say, have violated laws which prohibit financial firms from opening accounts, making trades, or transferring money abroad, according to a Bloomberg article by Alexander Ragir and Michael Smith called “Merrill […]

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’”.

Many Auction Rate Securities Investors Remain Left Out in the Cold


$130 billion of retail and institutional investor money is still being held in auction rate securities over two years after the $330 billion auction rate market failed and froze, according to Daisy Maxey in her Wall Street Journal article, “Still Frozen After All These Years.” But just as the Paul Simon song modulates from gloom […]