Auction-Rate Violations Result in $13M Penalty

Hume, Lynn
June 2006
Bond Buyer;6/1/2006, Vol. 356 Issue 32393, p1
Trade Publication
The article reports that the Securities and Exchange Commission (SEC) has received a global settlement worth 13 million dollars from 15 broker-dealer companies that engaged in industrywide practices violating the securities laws in the municipal, corporate and preferred stock auction-rate markets in the U.S. According to Kenneth Lench, assistant director of enforcement at SEC, auction rate securities market is a large and important market although it is not popular.


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