Hard Times for Auction Rate Securities

Kentouris, Chris
March 2008
Securities Industry News;3/31/2008, Vol. 20 Issue 13, p1
Trade Publication
The article reports on the lawsuits filed by clients against Merrill Lynch & Co., Morgan Stanley and Citigroup in separate actions. It is stated that the lawsuits are part of a series of legal maneuverings and fingerpointing by disgruntled investors who purchased auction rate securities (ARS). According to investors, the firms misrepresented the risk of ARS and that the should be compensated for losses incurred when auctions they promoted failed.


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