Auction-rate Securities Buy Backs Don’t Help Everyone

Despite the agreement of large investment banks to repurchase billions in failed auction-rate securities, these buy backs have done little to help certain investors.  Thanks to pressure applied by state and federal securities regulators, many investment banks have announced that they will buy back the auction-rate securities that they falsely represented as safe investments.

The list of investment banks that have agreed to repurchase failed auction-rate securities includes: Wachovia Corp., JP Moran Chase & Co., Morgan Stanley, and Citigroup, among others.

While these agreements will help thousands of investors, the buy back does not apply to $160 billion bought through mutual fund firms or brokers that didn’t underwrite the debt.

If you are feeling the financial hardships of failed auction-rate securities, contact the auction-rate securities lawyers of Williams Kherkher today by calling 800-220-9341.

Commerce Buys Back $545 Million Auction-rate Securities

Commerce Bancshares Inc. recently announced that it will offer to buy back around $545 million in auction-rate securities from close to 140 investors. Commerce noted that they have agreed to repurchase the auction-rate securities because of the failure of the market that caused ARS to become illiquid.

Commerce joins several other banking institutions that have recently agreed to repurchase ARS investments. Wachovia Corporation released a statement on the same day that stated that they would pay a $50 million fine and $9 billion in ARS back to investors.

As investigations continue, it is likely that more and more large banking institutions will come forward and agree to repurchase failed auction-rate securities.

If you have faced financial hardships due to the failure of your auction-rate securities investment, contact the auction-rate securities fraud lawyer from Williams Kherkher today. Call 800-220-9341 for more information.

Auction Rate Securities Investigations: Bank of America Subpoenaed

Bank of America Corporation has recently received subpoenas from state and federal government agencies, as well as requests for information on auction-rate securities. In February 2008, the auctions that were meant to set the rates of these securities began to fail, causing investors to panic and the government agencies to become suspicious of brokers’ role in the matter.

Bank of America also faces various class-action lawsuits that accuse the bank of misrepresenting auction-rate securities to investors.

The Securities and Exchange Commission has requested documents and information dating from 1992 to 2008. Bank of America also faces the investigation of its new subsidiary, Countrywide Financial Corp.

If you have suffered financial losses due to dishonest brokers or banks, contact the auction rate securities lawyers of Williams Kherkher at 800.220.9341.

Morgan Stanley To Repurchase ARS

Morgan Stanley, along with USB and Citigroup, has announced that they will be repurchasing auction-rate securities that were purchased before February 13th, 2008. Last week, USB and Citigroup agreed to return over $20 billion to investors.

After the $330 billion collapse that the market faced in February, the New York Attorney General has been looking into the cause of such a financially catastrophic event.

Although Morgan Stanley is attempting to make amends with  angry investors, Attorney General Andrew Cuomo is not impressed. “This is too little, too late, and our investigation into Morgan Stanley continues,” noted Alex Detrick. Cuomo’s spokesman.

For more information, contact an auction rate securities attorney today at 800-220-9341.

Citigroup Agrees to Buy Back Auction Rate Securities, Pay Fine

Without admitting to or denying allegations of auction rate securities (ARS) fraud, Citigroup Inc., the nation’s largest bank by assets, agreed to buy back $7.5 billion worth of its customers’ ARS holdings. The bank also agreed to start “restoring liquidity” to another $12 billion worth of ARS and pay regulators a $100 million fine.

The agreement was reached between Citigroup and the Securities and Exchange Commission (SEC), NY Attorney General Andrew Cuomo, and regulators from several states, including Texas.

Citigroup is the first to reach such a settlement in the ongoing auction rate securities debacle. The $19.5 billion in ARS that it promised to address accounts for only 9% of the $200 billion worth of ARS that are still frozen.

For more information, contact an auction rate securities attorney today at 800-220-9341.