“For nothing is hidden that will not become evident, nor anything secret that will not be known and come to light.” Thus hinteth today’s Wall Street Journal article by Suzanne Barlyn entitled “COMPLIANCE WATCH: SEC Warning May Help Unhappy Investors.” The United States Securities and Exchange Commission (the “SEC”) Staff’s warning that it intends to […]
The Securities Industry and Financial Markets Association, an important Wall Street lobbying group, has decided to support the Obama administration’s proposal to hold brokers to the same standard as a fiduciary when they provide investment advice, according to a recent report in The Wall Street Journal. While investors who sue their brokers have long argued, […]
On July 21, 2009, the Securities and Exchange Commission (“SEC”) filed a Complaint against Morgan Keegan & Company, Inc. in the United States District Court for the Northern District of Georgia for misleading investors about the liquidity risks of auction rate securities that it sold. Morgan Keegan sold approximately $925 million of auction rate securities […]
On July 9, 2009, Morgan Keegan & Company, Inc. (“Morgan Keegan”) (a wholly-owned subsidiary of Regions Financial Corporation), Morgan Asset Management, Inc. and three employees, each received a “Wells” notice from the Staff of the Atlanta Regional Office of the United States Securities and Exchange Commission (the “SEC”) stating that the SEC Staff intends to […]
A new wave of lawsuits and arbitrations are being filed on behalf of investors who purchased auction rate securities but have not been eligible to participate in redemptions offered by big banks as a result of regulatory settlements. See article entitled “‘Stranded’ ARS investors sue for a share of pie” by Jed Horowitz in the […]
Evergreen Investment Management Company (“Evergreen”), a unit of Wells Fargo & Co., has agreed to pay more than $40 million to settle an enforcement action by the Securities and Exchange Commission (“SEC”) and the Massachusetts Securities Division, according to articles in the Wall Street Journal and Reuters. Evergreen was a subsidiary of Wachovia at the […]
The SEC has taken action that should send shivers up the spines of many of Wall Street investment banks. The SEC recently charged 10 brokers associated with the now-defunct Brookstreet Securities Corp. (out of Irvine, California) with fraud for falsely marketing investments in complex derivative securities backed by mortgages as safe and suitable for retirees […]
The news just doesn’t seem to be getting any better for Regions Financial Corp. An Alabama Judge recently filed a shareholder derivative suit in Jefferson County Alabama against the top executives and board of directors of Regions Financial Corp. The suit alleges that the defendants’ mismanagement led to the huge losses suffered by the company […]
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 […]
Morgan Keegan’s problems seem to keep growing. Already facing massive claims over its sale of toxic bond funds, the company is now being confronted with auction rate securities problems. According to an article published by Reuters, the SEC may begin a civil proceeding against the Morgan Keegan & Co brokerage unit of Regions Financial Corp. […]
