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 […]
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 […]
Ignites
In what is being hailed as an historic change to the securities arbitration process, the SEC has approved a rule that allows investors to choose only public arbitrators to hear and decide their claims against brokers. Previously, in cases with three arbitrators (those involving claims over $100,000), the panels have been made up of two […]
Wall Street Journal
A unit of Citigroup Inc. (C) must pay a group of investors a total of $2.43 million for losses they incurred in a municipal arbitrage fund that lost about 80% during a period between 2007 and 2008. Five Memphis-based investors filed the claim in 2009, seeking damages related to MAT Five, which is among a […]