Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

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Friday, April 9, 2010

Massachusetts Charges Merrill with Violating Rule 144A in Sales of ARS

The Massachusetts securities regulators charged Merrill Lynch with improperly selling unregistered auction rate securities to two cooperative banks that did not qualify as "Qualified Institutional Buyers" under SEC Rule 144A.  The complaint alleges that the firm did not follow its own procedures for determining if the banks were qualified, and the banks are now left with illiquid investments that they never should have been sold.  Secretary Galvin Charges Merrill Lynch with Improper Sale of Unregistered Auction Rate Securities to Banks

http://lawprofessors.typepad.com/securities/2010/04/massachusetts-charges-merrill-with-violating-rule-144a-in-sales-of-ars.html

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