Colorado settled with Wachovia Securities, which is changing its name to Wells Fargo Advisors this month, regarding its sale of auction-rate securities, the state’s securities commissioner announced.
St. Louis-based Wachovia, formerly A.G. Edwards & Sons Inc., agreed to buy back $157 million of auction-rate securities from Colorado investors by June 30, Commissioner Fred Joseph said in a news release. The settlement followed an investigation into allegations that Wachovia misled investors by telling them the securities were as safe and accessible as cash.
Investors in some of the $330 billion of auction-rate securities, long-term debt with the interest rate reset weekly or monthly, have been caught with bonds they couldn’t sell since the market collapsed in February 2008. Colorado’s accord is part of a $13 billion multistate agreement first reached in August.
Wells Faro announced May 4 that Wachovia Securities is changing its name to Wells Fargo Advisors. On Dec. 31 Wells Fargo & Co. acquired Wachovia Corp., parent of Wachovia Securities.
FINRA arbitration is a dispute resolution process offered by the Financial Industry Regulatory Authority (FINRA) for resolving conflicts between investors, brokerage firms, and registered representatives. It serves as an alternative to traditional court litigation, providing a faster and often less costly way to settle disputes. In FINRA arbitration, a neutral arbitrator or panel hears both sides of the issue and makes a binding decision. This process is particularly common in cases involving allegations of securities fraud, breach of fiduciary duty, or other violations of securities laws. Investors and firms generally agree to arbitration in their customer agreements, making it a common method for resolving issues in the securities industry. With a focus on efficiency and finality, FINRA arbitration helps maintain trust and stability in the financial markets.
FINRA arbitration is a dispute resolution process offered by the Financial Industry Regulatory Authority (FINRA) for resolving conflicts between investors, brokerage firms, and registered representatives. It serves as an alternative to traditional court litigation, providing a faster and often less costly way to settle disputes. In FINRA arbitration, a neutral arbitrator or panel hears both sides of the issue and makes a binding decision. This process is particularly common in cases involving allegations of securities fraud, breach of fiduciary duty, or other violations of securities laws. Investors and firms generally agree to arbitration in their customer agreements, making it a common method for resolving issues in the securities industry. With a focus on efficiency and finality, FINRA arbitration helps maintain trust and stability in the financial markets.