Today the Securities & Exchange Commission and an auction-rate securities task force composed of various state regulators announced that they had entered into a tentative settlement with Wachovia which would require Wachovia to buy-back approximately $9 billion of auction-rate securities. This settlement is closely patterned after an earlier settlement entered into with UBS regarding its […]
The state auction-rate securities regulators task force continued to pursue financial institutions involved in the auction-rate securities market aggressively. To date, state regulators have subpoenaed approximately 30 financial institutions over their auction-rate securities practices and continue to pursue investigations with all firms that have yet to settle. The states have already tentatively settled auction-rate securities […]
Many auction rate securities investors are asking whether they should sell their illiquid holdings or should wait in hopes of their auction rate securities being refinanced or redeemed. Unfortunately, there is no one answer that is right for every investor. This article attempts to discuss various factors that investors may wish to consider in making […]
The subprime and credit crises affecting the economy have revealed an array of suitability abuses by Wall Street investment firms. While a rising stock market hides many abuses by brokerage firms, suitability abuses are more easily identifiable when times are tough. For example, many risk-averse investors with conservative objectives have recently discovered that they have […]
