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Securities Fraud Blog

Greco & Greco, P.C.

W. Scott Greco

Fight Investment Fraud

Greco & Greco's lawyers represent investors to recover losses caused by securities fraud, churning, lack of suitability, negligence, sales of unregistered securities, unauthorized trading, and other misconduct by stock brokers, investment advisors, financial planners and their firms.

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Only 4% of Student Loan Auction Rate Securities Have Been Refinanced to Date

According to this Bloomberg article, only 3 billion of the 85 billion in outstanding student loan Auction Rate Securities have been refinanced to date.  Furthermore, due to these securities’ low interest rates, the prospects for an immediate solution are bleak.  The article further reported that approximately two-thirds of publicly traded companies that are holding student loan auction rate securities have marked down the value of the securities, sometimes as much as 35%.

If you were sold student loan auction rate securities by a brokerage firm who represented that they were safe and/or liquid, and you would like to discuss your legal options, please contact Greco & Greco for a free consultation with one of our attorneys.

Posted by W. Scott Greco on 07/11/08.
Auction Rate Securities (ARS)Brokerage FirmsPermalink

Criminal Probe Initiated Regarding Auction Rate Securities Sales

According to this Wall Street Journal article, federal prosecutors in New York are investigating sales of auction rate securities by two former Credit Suisse brokers.  According to the article, the investigation allegedly involves representations made that the auction rate securities were backed by student loans, when in fact they were actually backed by CDO’s (collateralized debt obligations).  This appears to be the first reported criminal investigation related to Auction Rate Securities Sales.

If you are an investor stuck with Auction Rate Securities, and you would like a free consultation to discuss your legal options with an attorney, please contact Greco & Greco.

Posted by W. Scott Greco on 07/09/08.
Auction Rate Securities (ARS)Brokerage FirmsCredit SuisseCMOs / CDOsPermalink

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