Skip to main content

News

FINRA Shakes Citi Unit For $54M Over Hedge Funds

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 […]

Read More

Citigroup Loses Municipal Bond Case

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 […]

Read More

Complex Bond Faces Regulators' Scrutiny

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 […]

Read More

Securities America scores huge victory in Reg D case

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 […]

Read More

Citi Units Must Pay $6.4 Million Over Muni-Arbitrage Loss

Wall Street Journal

Two units of Citigroup Inc. have been ordered to pay $6.4 million to a group of investors, including the head of a Chicago-area investment-banking firm, for losses they incurred in a family of municipal arbitrage funds. The award by a divided securities arbitration panel represented a partial victory for the investors, who included D. Theodore […]

Read More