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...
SEC Press Release: Structured Products
(Jul 2011)
SEC Staff Issues Summary Report of Sweep Examination of Structured Products Sold to Retail Investors
The Securities and Exchange Commission (SEC) issued a press release today announcing that it had
"issued a report identifying common weaknesses seen in sales of structured securities products and describing measures by broker-dealers to better protect retail investors from fraud and abusive sales practices."
The report is a result of studies in the structured products business of...
SEC Press Release: New Short Form Criteria
(Jul 2011)
SEC Adopts New Short Form Criteria to Replace Credit Ratings
The Securities and Exchange Commission (SEC) issued a press release today announcing that it had removed "credit ratings as eligibility criteria for companies seeking to use 'short form' registration when registering securities for public sale." The SEC unanimously voted for the adoption of this new rule, in response to the Dodd-Frank Wall Street Reform and Consumer Protection Act that encouraged financial regulators to rely...
In the News: UBS & Morgan Stanley Subpoenaed over Reverse Convertibles
(Jul 2011)
UBS, Morgan Stanley Subpoenaed Over Reverse Convertibles
Bloomberg news reported today that the state of Georgia had sent subpoenas requesting for data and other information from UBS AG, Morgan Stanley and Ameriprise Financial Inc.. The state is investigating whether these brokerage firms violated the securities laws of Georgia in their sale of reverse convertibles to investors of Georgia.
Sales of reverse convertibles have grown, and investors who are being sold these structured...
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: Morgan Keegan fined in connection with CDOs
(Jun 2011)
Morgan Keegan to Pay $200 Million to Settle Fraud Charges Related to Subprime Mortgage-Backed Securities
The U.S. Securities and Exchange Commission (SEC) issued a press release today announcing that
"Morgan Keegan & Company and Morgan Asset Management have agreed to pay $200 million to settle fraud charges related to subprime mortgage-backed securities. Two Morgan Keegan employees also agreed to pay penalties for their alleged misconduct, including one who is now barred from the...
SEC Press Release: JP Morgan Fined in Connect with CDOs
(Jun 2011)
J.P. Morgan to Pay $153.6 Million to Settle SEC Charges of Misleading Investors in CDO Tied to U.S. Housing Market
The U.S. Securities and Exchange Commission (SEC) issued a press release today announcing that
"J.P. Morgan Securities LLC will pay $153.6 million to settle SEC charges that it misled investors in a complex mortgage securities transaction just as the housing market was starting to plummet. Under the settlement, harmed investors will receive all of their money...