Blog
Bankruptcy Threat amid Investor Loss
October 15, 2009
CIT Group Inc. failure to secure a second government bailout has prompted renewed bankruptcy fears. The New York based lender who traditionally looked to institutional investors for capital is coming under increased scrutiny from retail investors for its offering of corporate notes marketed under the name, “InterNotes.” Some have wondered what a company that traditionally […]
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Prosecution begins Opening Statements in Case Against Former Bear Sterns Hedge Fund Managers
October 14, 2009
Opening statements by the prosecution began today in the trial of one time Bear Stern employees Ralph Cioffi and Matthew Tannin. The former hedge fund managers are the first to be tried in connection with a federal probe into the subprime market collapse. The men are charged with misleading clients who invested into two separate […]
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Citigroup Fined by FINRA for Tax Evasion Strategies
October 13, 2009
The Financial Industry Regulatory Authority (FINRA) has fined Citigroup Global Markets Inc. $600,000 and censured the brokerage firm for tax evasion trading strategies found to be operating among its affiliates. The first scheme involved international clients of Citigroup circumventing US tax laws, allowing them to increase their respective returns. The second scheme was a complex […]
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New Suit Alleges Securities America Sold Notes it Knew to be Questionable
October 12, 2009
In a recently filed lawsuit, Securities America Inc. is charged with continuing to sell offerings of a faulty private placement after an executive at the firm sounded the alarm bell concerning the problem investment last year. In addition to this allegation, the lawsuit further charges that Securities America sold millions of dollars’ worth of notes […]
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FINRA Supports Mandatory Arbitration Clause Removal
October 6, 2009
Richard Ketchum, Chairman and Chief Executive of FINRA, testified before the House Financial Services Committee today in support of allowing the SEC to ban mandatory arbitration clauses in securities contracts. It is common practice for broker dealers to stipulate a mandatory dispute resolution forum in the event of a broker/client dispute. Such clauses, normally found […]
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