Lehman Brothers to be Investigated

Lehman Brothers, which attemtped to recieve court protection after its demise on September 15th, is now a part of the ever-growing auction rate securities fraud investigations going on nationwide. The investigations will seek to reveal the part Lehman played in the failure of $330 billion in the auction rate securities market.

The investigations have been going on for several months now and the Federal Bureau of Investigation has looked into 26 companies so far. Not only have the investigations focused on the over-arching companies responsible for this disaster, but the individuals as well, including Lehman’s former chief financial officer Erin Callan.

The investigations will attempt to reveal whether or not Lehman executives misrepresented the bank’s “health” and the liquidity of auction rate securities. After the market collapsed in February, thousands of people have been suffering financially due to these misrepresnted investments.

If you’ve been a victim of misrepresented investments, contact the auction rate securities lawyers of Williams Kherkher by calling 800-220-9341.

Bank of America’s Turn to Repurchase ARS Investments

Bank of America has agreed to repurchase $4.7 billion in auction-rate securities investments that failed after the market collapsed back in February 2008. The Securities and Exchange Commission has been working hard to ensure that all investors who were harmed in the collapsed market will be reimbursed for their hardships.

Last Wednesday, the SEC announced that it had reached a settlement with Bank of America that would require the bank to purchase $4.7 billion of the failed auction-rate securities investments. This settlement comes in response to the claim that Bank of America had misrepresented auction-rate securities to their clients.

While Bank of America refuses to say whether or not they are guilty of misrepresentation, they have agreed to repurchase the stated amount and will also pay a $50 million penalty.

If you’ve suffered financial hardships due to a negligent investor or investment firm, contact the auction rate securities fraud lawyers of Williams Kherkher by calling 800-220-9341.

Fidelity Agrees to Repurchase $300M in Auction-rate Securities

Fidelity Investments has agreed to join other brokerage firms in the buy back of millions of dollar in auction-rate securities after the crash of the market last February. As investigations have uncovered numerous cases of broker misconduct, the brokerages have been working with government agencies to repurchases the failed investments of thousands of investors.

Fidelity will buy back around $300 million in auction-rate securities, despite denying that they had much to do with the sale of these investments. Fidelity states that their actions are prompted by their long term commitment to their customers.

For more information about auction-rate securities, contact the auction-rate securities fraud lawyers of Williams Kherkher by calling 800-220-9341.

Comerica To Repurchase $1.46 Billion in Auction Rate Securities

Comerica Bank’s parenty company, Comerica Inc., has recently agreed to repurchase $1.46 billion in auction rate securities. Comerica worked with the Michigan attorney general and the Michigan Office of Financial and Insurance Regulation to settle on the agreement amount some time last week.

Several calls and complaints filed by Michigan residents began the investigation. These residents claimed to have been encouraged to invest in auction rate securities and told that they were similar to CDs that could be easily exchanged for cash. When the market crashed last February, these investors were left with nothing, having never been informed of the risk involved in auction rate securities.

Comerica will also be responsible for paying the State of Michigan a civil penalty in the amount of $10,000, as well as $100,000 to the Michigan Investor Protection Trust Fund.

If you were mislead to believe that auction rate securities were a safe investment, contact the auction rate securities fraud lawyers of Williams Kherkher by calling 800.220.9341 today.

Forty Brokerages Now Involved in Auction Rate Securities Investigation

As promised, New York Attorney General Andrew Cuomo has turned his attention on 40 brokerages that sold auction-rate securities to investors but did not underwrite the debt. Until now, these investigations have focused on the big investment banks. The investigation of smaller brokerages begins this Monday as the Financial Industry Regulatory Authority (FINRA) gears up to complete on-site examinations at the brokerages.

FINRA will be trying to determine whether or not each brokerage was aware of the problems in the market and whether or not they attempted to warn investors of the potential risks.

These investigations have led to settlements with eight large firms. These firms have agreed to repurchase around $50 billion of the $60 billion in auction-rate securities debt.

In an interview on CNBC, Cuomo stated, “We’re starting with the largest banks, in terms of number of people involved…and we’re working our way down the list. We’re now focusing on some of the mid-size players in the market.”

For more information on auction-rate securities fraud or to schedule a consultation with a lawyer, contact the auction-rate securities lawyers of Williams Kherkher by calling 800-220-9341.