Interactive Brokers must pay $667,000 for portfolio selloff mishap -panel
By: Suzanne Barlyn, Reuters (Feb 2015)
In "Interactive Brokers must pay $667,000 for portfolio selloff mishap -panel", Suzanne Barlyn reports on a $667,000 FINRA award against Interactive Brokers arising out of its alleged failure to auto-liquidate a hedge fund account in a commercially reasonable manner. The article quotes Craig McCann who testified about the defects of IB's auto-liquidation procedures and on damages at the final hearing.
Regulators Want Data on Bond-Trade Fees, SEC, Others Scrutinize Markups Paid by Retail Bond Investors
By: Katy Burne, Aaron Kuriloff, The Wall Street Journal (Jan 2015)
In "Regulators Want Data on Bond-Trade Fees, SEC, Others Scrutinize Markups Paid by Retail Bond Investors", Katy Burne and Aaron Kuriloff report on continued efforts by regulators to improve transparency in the municipal bond market and thereby reduce the extraordinary undisclosed markups and markdowns dealers charge retail investors. The article cites SLCG's comprehensive study of municipal bond markups, "Using EMMA to Assess Municipal Bond Markups".
Some have recouped millions from risky type of debt that plagues CPS
By: Heather Gillers, The Chicago Tribune (Dec 2014)
In "Some have recouped millions from risky type of debt that plagues CPS", Heather Gillers reports on the success some municipal issuers have had in recovering losses suffered as a result of following investment banks advice to issue auction rate securities and simultaneously enter into interest rate swaps rather than issue fixed rate debt. Issuers like the Chicago Public School System suffered large losses when the ARS clearing rates rose relative to the floating rate leg of the swap contracts and the mark to market value of the swaps dropped dramatically. The article quotes Craig McCann about the defects of synthetically fixing rates suing this combination of ARS and derivatives.
The Growth of Non-traded REITs
By: Bloomberg TV (Dec 2014)
SLCG's non-traded REIT research is cited in Deirdre Bolton's interview of Bob Rice of Tangent Capital Partners on the growth of illiquid, high-cost non-traded REITs.
The non-traded REIT fees discussed in the Bloomberg TV segment is excerpted from Table 2 in our "A Primer on Non-Traded REITs and other Alternative Real Estate Investments".
SEC's Cross Says Shine a Light on Tax-Free Market: Muni Credit
By: William Selway, Brian Chappatta, Bloomberg News (Oct 2014)
In the Bloomberg News article "SEC's Cross Says Shine a Light on Tax-Free Market: Muni Credit", William Selway and Brian Chappatta quote Craig McCann from SLCG's "Using EMMA to Assess Municipal Bond Markups" for the proposition that municipal bond investors pay as much as $1 billion in excessive markups and markdowns due to a lack of disclosure.
Muni Regulators May Force Brokers to Disclose Bond Trade Prices
By: William Selway, Bloomberg News (Aug 2014)
William Selway quotes Dr. McCann from SLCG's "Using EMMA to Assess Municipal Bond Markups" in the Bloomberg News article "Muni Regulators May Force Brokers to Disclose Bond Trade Prices".
Five Popular-but Dangerous-Investments for Individuals
By: Kirsten Grind, The Wall Street Journal (Jul 2014)
Kirsten Grind's "Five Popular - but Dangerous - Investments for Individuals" discusses five retail investments, including non-traded REITs, leveraged and inverse ETFs and complex structured products, investors should avoid. The article quotes SLCG's Craig McCann.
Exclusive: South Carolina jury awards $8.1 million to investor who was misled by BB&T
By: Suzanne Barlyn, Reuters (Jun 2014)
In "Exclusive: South Carolina jury awards $8.1 million to investor who was misled by BB&T" Suzanne Barlyn reports on an $8.1 million jury verdict arising out of BB&T's recommendation of a variable prepaid forward contract to Frank Maybank. The article quotes Craig McCann who testified about the defects of variable prepaid forwards and on damages at the trial.
Nontraded REITs Are Hot, But Have Plenty of Critics
By: Robbie Whelan, The Wall Street Journal (Jun 2014)
Robbie Whelan's "Nontraded REITS are Hot, But Have Plenty of Critics" reports on the issues with nontraded REITS. The article quotes Dr. McCann on the problematic issues surrounding nontraded REITS.
Teacher says UBS broker's advice lost her $400,000
By: Josh Kosman, The New York Post (Apr 2014)
Josh Kosman's "Teacher says UBS broker's advice lost her $400,000" reports on the financial losses faced by an investor in UBS Puerto Rico bond funds. The article quotes Dr. Edward O'Neal on the concentration of these funds.
