Posts belonging to Category Auction Rate Securities

Huge Auction Rate Securities Award Against Credit Suisse Upheld


A federal appellate court has denied Credit Suisse’s attempt to overturn a $431 million arbitration award in favor of STMicroelectronics NV in a case involving auction rate securities, according to Ian Thoms’ Law360 article entitled “2nd Circ. Downs Credit Suisse Appeal Of $431M Award.”

SunTrust Offers $14.3 Million to Settle an Auction Rate Securities Case


A Virginia bankruptcy court is considering a proposed $14.3 million settlement to be paid by SunTrust Banks Inc. over its sale of auction rate securities to LandAmerica 1031 Exchange Service Inc. (“LES”), according to Hilary Russ’s Law360 article entitled “$14.3M Deal Ends LandAmerica, SunTrust ARS Dispute.”

Auction Rate Securities Update – Raymond James


Raymond James Financial claims that it would face a loss of $25 million to $50 million if it is forced to immediately repurchase auction-rate securities that it sold to clients, according to an InvestmentNews article by Bruce Kelly entitled “ARS mess could cost Raymond James up to $50M.” That would cut into the firm’s total […]

Wells Fargo’s Auction Rate Securities Woes Continue


Wells Fargo Securities LLC is the subject of an investor class action lawsuit alleging that it violated intended third-party beneficiaries of an auction rate securities settlement with the SEC by refusing to buy back auction rate securities from trusts that purchased and held those securities as trust property, according to a Law360 article by Richard […]

Institutional Investor in Auction Rate Securities Allowed to Proceed with $200 Million Claim Against Deutsche Bank


A federal judge has ruled that an institutional investor that lost over $200 million in auction rate securities sold by brokerage firm Deutsche Bank Securities can also bring a claim against that firm’s parent company, Deutsche Bank AG, according to a recent BNA article entitled “Deutsch Bank Loses Bid to Dismiss Control Person Claims by […]

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, […]

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 […]

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 […]

Investor Recovers Ten Times The Amount Of Investment In Auction Rate Securities Arbitration


Just last month (August 2010), a panel of arbitrators acting under the sponsorship of the Financial Industry Regulatory Authority (FINRA) ordered UBS Financial Services to pay $80.8 million as consequential damages to a corporate investor in Student Loan Auction Rate Securities ? an amount equal to more than ten times the amount of the investment, […]

Raymond James’ Auction Rate Securities Problems Mount


A Financial Industry Regulatory Authority (FINRA) arbitration panel has ordered Raymond James & Associates, Inc. and one of its registered representatives to pay $925,000 to a Texas couple who purchased $1.4 million of municipal auction rate securities issued by Jefferson County, Alabama, according to August 26th articles in InvestmentNews by Bruce Kelly (“Raymond James pays […]