The SEC’s budget is the topic of hot debate, with SEC Chair Mary Schapiro begging Congress not to make further cuts to the agency that is charged with policing our securities laws. It is distressing to contemplate that this is …
When clients open a brokerage account they usually sign a contract requiring them to resolve any disputes with the firm or their broker through arbitration rather than in court. The Financial Industry Regulatory Authority (FINRA) is normally the forum where …
A FINRA arbitration panel has ordered Citigroup Global Markets to pay a combined $54 million in awards to clients who were sold the MAT/ASTA funds (FINRA Arbitration 09-03297). The claimants, who were former clients of Citigroup, alleged that they were …
According to a FINRA News Release on April 7, 2011: WASHINGTON — The Financial Industry Regulatory Authority (FINRA) today announced it has sanctioned two firms and seven individuals for selling interests in private placements without conducting a reasonable investigation. The companies …
The SEC announced on April 5, 2011 that Wells Fargo Securities agreed to a multi-million dollar settlement of charges that one of its units, Wachovia Capital Markets (which is now a part of Wells Fargo), committed securities fraud when it …
According to Bloomberg, the SEC is investigating to see if investors were defrauded into buying complex bonds known as reverse convertible notes. Reverse convertibles are securities that promise to pay investors a comparatively high fixed rate of interest and repay …
According to a report in Reuters, unnamed sources have stated that Ameriprise Financial is willing to let its broker-dealer subsidiary, Securities America, go out of business. Securities America is in financial trouble as a result of liabilities arising from its …
Unanimous decisions by the U.S. Supreme Court are rare. Even rarer are those upholding class action claims under the federal securities laws. Because of this, there is reason to be pleased with yesterday’s opinion, Matrixx Initiatives, Inc. v. Siracusano (No. …
Recent reports reveal that UBS, Bank of America (BOA), and Citigroup are under investigation by the SEC and U.S. Department of Justice for allegedly manipulating the London Interbank Offered Rate, known as LIBOR. LIBOR is the most widely used benchmark …
Brokerage firms normally want to stay out of court and force their clients to sue in arbitration; yet, Securities America, a subsidiary of Ameriprise Financial, Inc., went to court in an effort to cram down a class action settlement on its …
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