InvestmentNews
Citigroup Inc., the third-biggest U.S. bank, was ordered to pay more than $51 million to a group of investors in its MAT and ASTA municipal-bond hedge funds, which regulators began examining more than two years ago. The ruling by arbitrators at the Financial Industry Regulatory Authority, which oversees U.S. brokerages, includes $17 million in punitive […]
Law360
The Financial Industry Regulatory Authority on Monday ordered a Citigroup Inc. unit to pay three investors more than $54 million for its mismanagement of poorly performing municipal bond hedge funds. Gerald D. Hosier, Brush Creek Capital LLC and Jerry Murdock Jr. filed the claim in June 2009, alleging Citigroup Global Markets breached its fiduciary duty […]
Wall Street Journal
Citigroup Inc. has been ordered to pay $54.1 million to two wealthy investors for losses they suffered on a series of risky municipal bond funds that lost 77% of their value in the midst of the financial crisis. The award by an industry arbitration panel is the largest ever levied against a major Wall Street […]
Wall Street Journal
‘Reverse Convertible Notes’ Can Tumble Along with Stock Securities regulators have broadened their probes into whether Wall Street sold a complex type of bond without fully disclosing the drawbacks to individual investors. Known as “reverse convertible notes,” the product pays interest but also is tied to the performance on an underlying stock, so if the […]
InvestmentNews
Judge combines private-placement arbitration claims with class actions; plaintiff’s attorney decries decision Securities America Inc. scored a huge legal victory this morning when a federal judge in Dallas halted three upcoming Finra arbitration cases against the firm and its brokers over the sale allegedly bogus private placements. Judge W. Royal Furgeson Jr. of U.S. District […]