Clipmarks | Auction-rate Clips

TWO CHEESY BANKERS LOOKING FOR LOOPHOLE NOW !

Thu, 04 Sep 2008 09:43:31 GMT

clipped by: jt3600
clipper's remarks: Making their own "cheese" while delivering the holes to their clients !

US bankers facing fraud charges

Two former Credit Suisse bankers have been charged with fraud for allegedly deceiving clients over the value of debt tied to sub-prime mortgages.

Julian Solov and Eric Butler are accused of selling "auction-rate securities" on the pretence they were as safe and risk-free as cash.

In reality, they were backed by high-risk investments and generated large commission payments for the duo.

The two men are facing criminal charges of securities fraud, wire fraud and conspiracy, which carry a maximum sentence of 25 years and fines of in excess of $5m.

Merril Reaches Tentative Deal With SEC Over ARS

Fri, 22 Aug 2008 22:20:38 GMT

clipped by: Forbes Markets

Clip Source: www.reuters.com

Merrill Lynch & Co Inc (MER.N: Quote, Profile, Research, Stock Buzz) has struck a tentative deal with U.S. securities regulators to buy back up $7 billion in auction-rate securities, the latest in a series of pacts between banks and regulators over the debt instruments.

The U.S. Securities and Exchange Commission said on Friday Merrill agreed to buy back the securities from investors, small businesses and charities who bought them from Merrill.

The deal comes a day after Merrill agreed to pay a $125 million fine, the second-highest after UBS's $150 million among banks to settle so far, and agreed to buy back between $10 billion and $12 billion in ARS from individual investors, according to a settlement with New York State Attorney General Andrew Cuomo.

Tags: auction rate securities, merrill lynch, credit crisis

TAKING THE BULLS HORNS & THEN MAKING IT PAY THREW THE TAIL !

Fri, 22 Aug 2008 09:12:46 GMT

clipped by: jt3600
clipper's remarks: COLD BUSTED ! when it come to bull I definitely spot it ,plus throw enough of it around ! Good brown eye catch Mr. Cuomo, We should all chip in and give him a free pass to have a hooker come up & stay awhile,in my case he's going to have to use one of those $20.00 "HO's" !

Clip Source: news.bbc.co.uk

More banks settle securities case

Merrill Lynch, Goldman Sachs and Deutsche Bank are the latest banks to reach a settlement with US regulators over the sale of risky securities.

The banks have agreed to buy back billions of dollars in auction-rate securities and pay fines, after allegations that they misled investors.

Under the latest deal with Mr Cuomo, Merrill Lynch said it would repurchase up to $12bn in auction rate securities as well as pay the $125m fine.

Deutsche Bank meanwhile has a $15m fine to pay and must buy back some $1bn of the investments.

Earlier this year, Citigroup and Swiss banking giant UBS reached a settlement to buy back $26bn of the securities.

Goldman Sachs has a $22.5m fine and has agreed to buy back $1.5bn in securities.

BULLISH OR BULLSHIT ?

Mon, 18 Aug 2008 08:59:21 GMT

clipped by: jt3600
clipper's remarks: New York grabbing the bull by horns so it to gets it's share of tale .bull states before you put in please use this $12bn jar of vaseline !

Clip Source: news.bbc.co.uk

Lawsuit threat to Merrill Lynch

New York State's attorney general has threatened to sue Merrill Lynch for misrepresenting certain debt investments as safer than they were.

Last week, Merrill Lynch offered to buy back $12bn (£6bn) of auction-rate debt. It said it was surprised by the threat.

Mr Cuomo said that the bank's voluntary buyback was not an adequate amount.

chart

Sat, 16 Aug 2008 10:58:39 GMT

clipped by: stefy13

Clip Source: www.bloomberg.com

•Merrill, Goldman Pressured by Cuomo on Auction-Rate Debt; Wachovia Settles

•Fed's Lockhart Wants to Keep Rates on Hold, Sees Debate About Raising Them

•China's Economy Slows as Exports, Output Slip, Olympic Restrictions Bite

•U.S. Consumer Confidence Increases on Fuel; New York Manufacturing Expands

•Asian Stocks Decline for Third Week on Concerns Economic Growth Is Slowing

•Goldman, JPMorgan May Prove `Mortal' as Earnings Likely to Fall, UBS Says

•Stocks in U.S. Climb as Commodity Prices Fall; Wal-Mart, Ambac, MBIA Gain

•Bush, Merkel Demand Russia Withdraw From Georgia, Denounce `Intimidation'

•Margin of `Shaved Finger' Gives Phelps Record-Tying Gold Medal in Beijing

NY Threatens To Sue Merrill Over ARS

Fri, 15 Aug 2008 22:06:32 GMT

clipped by: Forbes Markets

Clip Source: www.reuters.com

New York state on Friday threatened to sue Merrill Lynch & Co over auction-rate securities as part of its industrywide probe of banks accused of misleading investors about the debt's risks.

Attorney General Andrew Cuomo, who has reached settlements with five major banks to buy back more than $30 billion of the securities and pay fines of $360 million, said on a conference call with reporters that his office is "preparing to commence legal action" against Merrill.

Merrill said in a statement that it was surprised by Cuomo's announcement.

Tags: merrill lynch, credit crisis, auction rate securiies

SEC, States Close To Auction-Rate Pacts -- Sources

Thu, 14 Aug 2008 00:13:53 GMT

clipped by: Forbes Markets

Clip Source: www.reuters.com

NEW YORK (Reuters) - U.S. and state regulators are close to reaching a settlement with multiple banks accused of selling auction-rate securities under false pretenses that would force them to repurchase billions of dollars of the now-illiquid securities at face value, people familiar with the matter said on Wednesday.

A five-month investigation led by New York Attorney General Andrew Cuomo and the Securities and Exchange Commission into the auction-rate market led to agreements last week with Citigroup and UBS. These banks will repurchase securities and together pay $250 million in fines.

On Monday, New York put pressure on JPMorgan Chase & Co, Morgan Stanley and Wachovia Corp to enter settlement talks that would yield similar terms.

Tags: regulation, sec, credit crisis, auction rate securities

Merrill To Buy Clients Auction Rate Securities

Thu, 07 Aug 2008 23:32:04 GMT

clipped by: Forbes Markets

Clip Source: www.reuters.com

NEW YORK (Reuters) - Merrill Lynch & Co Inc said on Thursday it will buy back its clients' auction-rate securities beginning next year, making the world's largest retail brokerage the latest to bail its customers out of the securities.

Merrill said it will buy back the securities beginning January 15, at which time it estimates more than 30,000 of its clients will own $10 billion of the paper.

Clients looking for access to their cash before then can borrow against the securities until mid-January at no cost, or a low cost, said spokesman Mark Herr. Merrill's offer to buy back the securities expires January 15, 2010.

Tags: merrill lynch, auction rate securities, credit crisis

Credit Crisis Adds Millions to D.C.'s Interest Payments

Mon, 07 Apr 2008 11:09:33 GMT

clipped by: rmowery

Clip Source: www.washingtonpost.com

Credit Crisis Adds Millions to D.C.'s Interest Payments

Just as subprime mortgage borrowers were teased into taking out loans they later could not afford when the interest rates spiked, scores of municipalities, schools, hospitals and even museums are now facing soaring interest payments on unconventional bonds that proved too good to be true.

The District has begun paying an extra $1.2 million every month because its interest payments have doubled, and in some cases even tripled, on $601 million of these bonds. That represents nearly one-seventh of the city's total debt and includes $24 million for the Washington Nationals' new stadium, the District's treasurer said. City officials were convinced by investment banks that these types of loans would be safe and cheaper than traditional borrowing.

Tags: credit, mortgage, bonds, auction-rate, securities, credit crisis, economy

Bid-rigging was the support behind the auction rate market?

Thu, 21 Feb 2008 14:30:25 GMT

clipped by: Forbes Business
clipper's remarks: Broker-dealers are fleeing the auction rate securities market, and that seems to be the reason why so many auctions are failing. Here's something else for regulators to pursue.

Clip Source: www.bloomberg.com

Auction Debt Succumbs to Bid-Rig Taint as Citi Flees

The collapse of the auction-rate bond market, where state and local governments go to raise cash, demonstrates that regulators are no match for Wall Street.

Hundreds of auctions have failed this month, sending borrowing costs as high as 20 percent because dealers from Goldman Sachs Group Inc. to Citigroup Inc., UBS AG and Merrill Lynch & Co. stopped using their own capital to support the sales.

nadequate disclosure ``may have masked the impact of broker-dealer bidding on rates and liquidity,'' Martha Haines, head of the Securities and Exchange Commission's municipal office, said in an interview. ``The large numbers of recent auction failures, which are reported to have occurred due to a reduction in bidding by broker-dealers, appears to indicate those concerns were well founded.''