Welcome to the new SLCG blog
(Jan 2012)
At SLCG we encounter a lot of complex investment strategies and interesting financial products. We have traditionally written up our findings into research articles and published them in peer-reviewed academic journals, but lately we've realized that there are too many interesting topics to devote an entire research project to each and every one.
We support the dissemination of information that can inform and educate everyday investors of both old and new financial products. It would be...
Dishonest Sales of LEFTs by RBC Capital Markets
(Jul 2011)
Secretary Galvin Charges RBC Capital Markets and Agent with Dishonest Sales of Leveraged and Inverse Leveraged Exchange Traded Funds
The Enforcement Section of the Massachusetts Securities Division of the Office of the Secretary of the Commonwealth alleges that Michael Zukowski, a registered representative of RBC Capital Markets, made "numerous unsuitable recommendations and sales" of leveraged and inverse leveraged exchange traded funds (ETFs) to clients who did not understand the risks...
SEC Press Release: State of Municipal Securities Market
(Jul 2011)
SEC Announces July 29 Field Hearing on the State of the Municipal Securities Market
The Securities and Exchange Commission (SEC) issued a press release today announcing that
"it will hold a municipal securities market field hearing in Jefferson County, Ala., on July 29. Topics will include distressed communities, small issuers, disclosure, derivatives and pre-trade price transparency."
The purpose of the field hearing is to understand the relevant issues affecting investors in...
SEC Press Release: Auction Rate Securities
(Jun 2011)
SEC Charges Raymond James for Auction Rate Securities Sales Practices
The U.S. Securities and Exchange Commission (SEC) issued a press release today announcing that it had
"charged Raymond James & Associates Inc. and Raymond James Financial Services Inc. for making inaccurate statements when selling auction rate securities (ARS) to customers."
Here is the SEC's Administrative Proceeding.
According to Registered Rep., Raymond James has agreed to repurchase $300 million of ARS...
SEC Press Release: Fraudulent Bidding Practices
(May 2011)
SEC Charges UBS with Fraudulent Bidding Practices Involving Investment of Municipal Bond Proceeds
The Securities and Exchange Commission (SEC) issued a press release today announcing that it had
"charged UBS Financial Services Inc. (UBS) with fraudulently rigging at least 100 municipal bond reinvestment transactions in 36 states and generating millions of dollars in ill-gotten gains. To settle the SEC's charges, UBS has agreed to pay $47.2 million that will be returned to the...
FINRA Press Release: Auction Rate Securities
(Apr 2011)
FINRA Fines Jefferies $1.5 Million for Failing to Disclose Additional Compensation Paid and Conflicts in Sale of Auction Rate Securities
The Financial Industry Regulatory Authority (FINRA) issued a press release today announcing that
"it has fined Jefferies & Company, Inc. $1.5 million for failing to disclose additional compensation received and conflicts in connection with the sale of auction rate securities (ARS). FINRA also ordered Jefferies to repay $425,000 in fees and...
SEC Press Release: Municipal Bond Fund
(Jan 2011)
SEC Charges Former Portfolio Managers With Defrauding Utah Municipal Bond Fund
The U.S. Securities and Exchange Commission (SEC) issued a press release today announcing that it had
"charged two former portfolio managers with defrauding a mutual fund that invests primarily in municipal bonds issued by the State of Utah and its county and local authorities."
Young and Albright - co-portfolio managers of the Tax Free Fund for Utah at the time - charged municipal bond issuers over...
In the News: Auction Rate Securities
(Dec 2010)
Forbes' blogger Bill Singer narrates the story of Grand Circle LLC.
Grand Circle had brokerage accounts at the Royal Bank of Canada (RBC) and Wachovia. Through the recommendation of representatives at RBC and Wachovia, Grand Circle purchased auction rate securities (ARS). For business-related reasons, Grand Circle opened another brokerage account at CCO Investments Services Corp (CCO). Grand Circle's Investment Policy stated that it wanted safe, liquid and AAA rated securities and that...
SEC Press Release: Banc of America Bid Rigging
(Dec 2010)
SEC Charges Banc of America Securities With Fraud in Connection With Improper Bidding Practices Involving Investment of Proceeds of Municipal Securities
The U.S. Securities and Exchange Commission (SEC) issued a press release today announcing that it had
charged Banc of America Securities, LLC (BAS) with securities fraud for its part in an effort to rig bids in connection with the investment of proceeds of municipal securities.
"BAS has agreed to pay over $36 million, together with...
