The collapse of auction-rate securities
Secretary of State William F. Galvin charged brokerage Oppenheimer & Co. yesterday with fraud and unethical conduct in the sales of auction-rate securities, which trapped $56 million of Massachusetts customers' funds this year.
Massachusetts' attorney general and secretary of state urged a House panel probing the collapse of the auction-rate securities market to find a way to provide timely relief for investors.
Bank of America Corp. has agreed to buy back $43 million in auction-rate securities from the Massachusetts Turnpike Authority and the Massachusetts Housing Partnership, as part of its ongoing negotiations with the Massachusetts Securities Division, both agencies confirmed.
David Shulman, UBS AG's global head of municipal securities, left in the wake of settlements by the bank with state and federal regulators over the sale of auction-rate securities before the market collapse in February.
New York Attorney General Andrew Cuomo's office is probing the relationship between Fidelity Investments and Goldman Sachs Group Inc. in connection with the broker's sales of auction-rate securities, said people familiar with the investigation.
Some Fidelity Investments customers who bought auction-rate securities say they didn't know such investments existed until they were told about them by a Fidelity representative.
New York Attorney General Andrew Cuomo will intensify his probe into auction-rate securities by focusing on Bank of America Corp., Goldman Sachs Group Inc. and Deutsche Bank AG, said a person close to the investigation.
Documents show Bank of America warned California of big problems, but let small investors fend for themselves.
The Swiss bank, settling regulators' claims it misled customers, plans to buy back about $19 billion in auction-rate securities.
Massachusetts regulators charged Merrill Lynch & Co. with fraud and unethical conduct in the sales of auction-rate securities, alleging that the Wall Street firm failed to warn customers about the risks in the market.
UBS AG agreed to pay Massachusetts $1 million to settle an investigation by Attorney General Martha Coakley into the marketing of auction-rate securities to 20 towns and public agencies in the state.
Regulators from Massachusetts and several other states, investigating Wachovia Securities' auction-rate securities sales practices, went to its St. Louis headquarters yesterday and requested documents.
An affiliate of the New England Patriots football team is playing defense on a new field: the market for auction-rate securities.
At least five major Wall Street firms warned the Commonwealth in January that a $330 billion slice of the bond market was in distress, e-mails and presentations from those firms show.
A former UBS broker who sold $30 million in auction-rate securities to Massachusetts towns and cities has filed a whistle-blower lawsuit against the Wall Street firm, alleging it retaliated against him for cooperating with regulators and forced him to resign.
Executives at the highest level of UBS Financial Services Inc. knew as early as last fall that the auction-rate securities market was failing, and urged brokers to move the investments from the firm's books into the hands of individual clients, state regulators alleged in a lawsuit filed yesterday against the brokerage.
Massachusetts securities regulators today are expected to file civil fraud charges against UBS Financial Services Inc. for allegedly selling investments it claimed were as safe as cash even though the Swiss firm knew they were risky, according to a state official briefed on the case.
For investors trapped in auction-rate securities, finding out what they actually own has been a vexing challenge.
Wall Street firms may have led their own brokers to believe auction-rate securities were safer than they really were, by labeling them as cash investments and failing to warn brokers of their risks, according to customer records and interviews.
UBS Financial Services Inc. knew as early as December that a segment of the municipal bond business was in trouble, but the Wall Street firm kept selling the investments to some clients without warning them of the risk, according to documents reviewed by the Globe.
Investors in a growing number of closed-end mutual funds that were frozen by the credit crisis have been given the chance to reclaim their money by some fund families.
For years, UBS broker Timothy P. Flynn has made a business of calling on small-town treasurers in western Massachusetts, where he grew up.
A major Wall Street firm agreed to return $37 million to 17 cities and towns in the state, as well as to the Massachusetts Turnpike Authority, after it allegedly misled them into buying investments they thought were as safe as cash.
Jack Allegrini had a problem, so he put in a few calls to Washington. He never heard a word back.
Escaping from high interest payments on variable-rate bonds may prove costly for many schools and hospitals.