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Auction Rate

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Auction Rate stories:

Wells Fargo Forced To Hand Over $1.3 Billion In Auction-Rate Securities Settlement
Nov 19th, 2009 - Silicon Alley Insider
From the North American Securities Administrators Association: WASHINGTON, D.C. November 18, 2009 - The North American Securities Administrators Association (NASAA) today...
Wells Fargo will repay $1.4B in auction-rate settlement
Nov 18th, 2009 - USA Today
SAN FRANCISCO (AP) — Three subsidiaries of Wells Fargo (WFC) have agreed to repay customers about $1.4 billion to settle a lawsuit alleging the company improperly marketed risky investments as safe.
Wells Fargo to Buy Back $1.3 Billion in Auction Debt
Nov 18th, 2009 - Bloomberg
Nov. 18 (Bloomberg) -- Wells Fargo & Co., the fourth-biggest U.S. bank by assets, agreed to repay about $1.3 billionto brokerage clients whose funds were frozen when the auction-rate securities market collapsed last year...
Wells Fargo To Repay Clients Who Held Auction Rate Securities
Nov 18th, 2009 - Wall Street Journal
NEW YORK (Dow Jones)--The North American Securities Administrators Association Wednesday announced a settlement in principle between Wells Fargo Investments LLC and state securities regulators to return approximately $1.
BRIEF-Wells Fargo to return $1.3 billion to ARS customers in settlement
Nov 18th, 2009 - Forbes
WASHINGTON, Nov 18 (Reuters) - The North American Securities Administrators Association: * Says a brokerage unit of Wells Fargo & Co agreed to a $1.3 billion settlement involving auction rate securities.

Auction Rate videos from YouTube:

6:14
NASAA on Auction Rate Securities Settlements
Texas Securities Commissioner Denise Voigt Crawford outlines the effective actions of state securities regulators to provide relief to investors in the frozen auction rate securities markets.
6:31
Inside Look: Wachovia Auction-Rate Settlement
Interview with Missouri Secretary of State Robin Carnahan
2:40
Update: Auction Rate Probe Scandal
New York Attorney General Andrew Cuomo and SEC Announce Settlements with Two More Investment Banks
2:51
Citigroup Settles SEC, State Probes Of Auction-Rate Securities
Citigroup settles SEC, State probes of Auction-Rate Securities; Analysis by Karen Tyler, North Dakota Securities Commissioner; Analysis by Linda Thomsen of SEC

Auction Rate from WikiPedia:

An auction rate security (ARS) typically refers to a debt instrument (corporate or municipal bonds) with a long-term nominal maturity for which the interest rate is regularly reset through a dutch auction. Since February 2008, most such auctions have failed, and the auction market has been largely frozen. In late 2008, investment banks that had marketed and distributed auction rate securities agreed to repurchase most of them at par.

The first auction rate security for the tax-exempt market was introduced by Goldman Sachs in 1988. However, the security was invented by Ronald Gallatin at Lehman Brothers in 1984.

Auctions are typically held every 7, 28, or 35 days; interest on these securities is paid at the end of each auction period. Certain types of daily auctioned ARSs have coupons paid on the first of every month. There are also other, more unusual, reset periods, including 14 day, 49 days, 91 days, semi-annual and annual. Non-daily ARS settle on the next business day, daily ARS settle the same day.