Auction Rate Securities Information Center

State securities regulators have led the national effort to give investors access to billions of dollars of their funds,
which have been frozen in the auction rate securities markets.

Background

In 2008, state offices began receiving hundreds of complaints from Main Street investors alleging that several Wall Street firms had misled them by falsely assuring that investments in auction rate securities we as safe and liquid as cash.

The widespread marketing of auction rate securities as cash equivalents, followed by the collapse of the ARS auction market in February 2008 left thousands of investors without access to their money. Individuals, small businesses, and institutional investors have all suffered financial hardship, ranging from the inability to close on home purchases to shortfalls in payroll.

As investor complaints to states increased, the North American Securities Administrators Association announced in April 2008 the formation of a multi-state Task Force, comprised of securities regulators in 12 states, to investigate whether the nation’s prominent Wall Street firms had systematically misled investors when placing them in auction rate securities.

 

ARS Arbitration Information Center

Here you will find general information regarding the Special Arbitration Procedures applicable to the ARS settlements. ARS Arbitration Information Center >>

News & Information

Enforcement Actions

Massachusetts: Secretary Galvin Charges Merrill Lynch with Fraud in Auction Rate Securities Dealings, July 31, 2008

Massachusetts: Secretary Galvin Charges UBS with Fraud in Auction Rate Securities Dealings, June 26, 2008

NASAA News Releases

E*TRADE: State Securities Regulators Announce Settlement with E*TRADE in Auction Rate Securities Investigations, October 19, 2011

Stifel, Nicolaus & Co. Inc.: State Securities Regulators Announce Settlement with Stifel, Nicolaus & Co., Inc. in Auction Rate Securities Investigations, December 29, 2009

Wells Fargo Investments LLC: State Securities Regulators Announce $1.3 Billion Settlement with Wells Fargo Investors in Auction Rate Securities Investigations, November 18, 2009

TD Ameritrade, Inc.: State Securities Regulators Announce Settlement with TD Ameritrade in Auction Rate Securities Investigations, July 20, 2009

State Securities Regulators Remind Auction Rate Securities Investors to Contact Firms About Buyback Offers, November 10, 2008

Bank of America RBC Capital Markets Corp.: State Securities Regulators Announce Settlement with Bank of America and RBC Capital Markets Corp. in Auction Rate Securities Investigations, October 8, 2008

Credit Suisse Securities: State Securities Regulators Announce Settlement with Credit Suisse Securities in Auction Rate Securities Investigation, September 16, 2008

Merrill Lynch, Goldman Sachs, Deutsche Bank: State Securities Regulators Announce Settlements with Merrill Lynch, Goldman Sachs, Deutsche Bank in Auction Rate Securities Investigations, August 21, 2008

Wachovia: Securities Regulators Announce Settlement With Wachovia Over Sale of Auction Rate Securities, August 15, 2008

JP Morgan & Morgan Stanley: State Securities Regulators Announce Settlements with JP Morgan, Morgan Stanley in Auction Rate Securities Investigations, August 14, 2008

UBS: Securities Regulators Announce Settlement with UBS in Auction Rate Securities Investigation, August 11, 2008

Citigroup: Securities Regulators Announce Settlement with Citigroup in Auction Rate Securities Investigation, August 7, 2008

State Securities Regulators Coordinate Ongoing Auction-Rate Securities Investigations, April 17, 2008

State Activity

Massachusetts: Fidelity Agrees to Buy Back Auction Rate Securities, September 12, 2008

New York: Attorney General Cuomo Announces Settlements With Merrill Lynch, Goldman Sachs, And Deutsche Bank To Recover Billions For Investors In Auction Rate Securities, August 21, 2008

Missouri: Carnahan Announces $9 Billion Dollar Investor Buyout Of Wachovia Auction Rate Securities, August 15, 2008

New York: Attorney General Cuomo Announces Settlement With Wachovia To Recover Billions For Investors In Auction Rate Securities, August 15, 2008

New York: Attorney General Cuomo Announces Settlements With JP Morgan And Morgan Stanley To Recover Billions For Investors In Auction Rate Securities, August 14, 2008

Missouri: Carnahan Meets With Wachovia to Find Solution for Auction Rate Securities Investors, August 11, 2008

New York: Attorney General Cuomo Expands Investigation Into Auction Rate Securities Scandal, August 11, 2008

New York: Attorney General Cuomo Announces Settlement With UBS To Recover Billions For Investors In Auction Rate Securities, August 8, 2008

Texas: Securities Regulators Announce Settlement with Citigroup in Auction Rate Securities Investigation, August 7, 2008

New York: Attorney General Cuomo Announces Landmark Settlement With Citigroup To Recover Billions In Auction Rate Securities For Investors Nationwide, August 7, 2008

Missouri: Carnahan Leads Special Inspection of Wachovia Securities, July 17, 2008

NASAA Congressional Activity

NASAA Submits a Written Statement Regarding Auction Rate Secruties to the House Financial Services Committee, September 18, 2008

Go to the ARS Arbitration Information Center for more information