Home Page >> Possible Cases >> Auction Rate Securities
Auction Rate Securities
Conservative, income oriented investors in Auction Rate Securities (ARS) are now discovering that these "just like cash" investments are not liquid and may have little or no value unless they take legal action.
ARS ARTICLES AND INTERVIEWS Auction Rate Securities: Arbitration is Quicker than Settlement
 Kansas City, MO: The big news in Auction Rate Securities (ARS) is that some of the financial firms, such as Citibank, Bank of America and UBS are in negotiations with regulators about payoff programs for clients who purchased auction rate securities. However, according to Diane Nygaard, founder of the Nygaard Law Firm, nothing has been finalized and no one has been paid yet. [ Read More ]
Companies Announce Auction Rate Securities Settlement
 New York, NY: Multiple companies have announced deals with regulators involving auction rate securities lawsuits. Some of the announcements involved the Securities and Exchange Commission (SEC) while others involved various state regulators. [ Read More ]
Auction Rate Securities: Remember Consequential Damages
 Kansas City, MO: Recent proposed settlements involving auction rate securities from UBS, Merrill Lynch, Citigroup, and other underwriters may sound very appealing to investors. However, according to Diane Nygaard, founder of the Nygaard Law Firm, investors must look over their paperwork carefully before signing anything, or they may sign away their right to certain compensation. [ Read More ]
|
|
FREE CASE
EVALUATION
Send your claim to a Lawyer who will review your case at NO COST or obligation.
CLICK HERE
|
| |
|
MORE ARS
|
|
ARS IN THE NEWS
|
AUG-15-08: New York State Attorney General Andrew Cuoma has said he will take legal action against Merrill Lynch & Co, in relation to auction-rate securities. [REUTERS: AUCTION RATE SECURITIES]
|
AUG-15-08: Wachovia Corp has announced that it will buy back $9 billion in auction-rate debt, with a $5.7 billion pay out to investors, charities and small businesses by November 28. [REUTERS: WACHOVIA AUCTION RATE SECURITIES]
|
AUG-11-08: Wachovia, JPMorgan Chase, and Morgan Stanley will be investigated by the New York Attorney General, Andrew Cuomo, is as part of his office's on-going investigations into the promotion and sale of auction rate securities. [CHARLOTTE BUSINESS JOURNAL: AUCTION RATE SECURITIES]
|
|
JUL-01-08: A report by the Association for Financial Professionals says more than 85% of the firms that invested in the auction-rate securities market, which collapsed amid the global credit crunch, were led to think or explicitly told that Wall Street banks would support the market in the event of a crisis. [SMARTBRIEF: AUCTION RATE SECURITIES]
|
JUN-19-08: Eaton Vance has received approval to issue a new type of security that will allow its money market fund to bail out holders of auction rate securities. [MOTLEY FOOL: EATON VANCE ARS]
|
JUN-19-08: Abercrombie & Fitch had to borrow $100 million when it found it self unable to access $300 million tied up in auction rate securities. [BLOOMBERG: ABERCROMBIE ARS]
|
|
Publish your experience here for our readers to learn from.
|
|
Auction Rate Securities a "Frozen" Asset
ARS investors thought they had a money market or CD-like securities that they could cash out when needed. As early as last summer, the $330 billion auction rate market began locking up. As the global credit crunch continued, it has been increasingly hard to resell the securities.
 A few companies, like Nuveen and Eaton Vance, are making attempts to cash out holders of ARS, but so far none of the investors have received a dime.
Investors checking their portfolios online may be shocked to see the value of their securities listed as "N/A" (not available), and showing a worth of zero. Others see values of 75 to 95 cents on the dollar.
The fund issuers are telling investors they should sue the brokers such as E Trade, Ameritrade, UBS, Morgan Stanley, Merrill Lynch,
Schwab, Fidelity, etc. who sold them the ARS.
|
|
ARS Values Drop
UBS cut the value of the average ARS by 5 to 15 percent on March 28th. Morgan Stanley was valuing the securities at par as of March statements, but included a notice stating that investors may not realize par value when selling the shares.
In the mean time, investors are left with securities that are being devalued, or are unsalable. Investors are hiring attorneys in order to get priority status and treatment for their individual losses.
Because many institutions issued these bonds, and many brokerage firms sold them, ARS investors should take prompt legal action to protect their savings.
|
Auction Rate Securities Legal Help
If you have purchased Auction Rate Securities from a brokerage firm or dealer, please click the link below to send your complaint to a lawyer to evaluate your claim at no cost or obligation.
Posted on Apr-3-08
Updated on Sep-8-08
|
Search 10,000 recent cases and settlements
Lawsuits:
Services:
|
