Auction Rate Securities
Zamansky & Associates represents many investors, both institutional and retail, who purchased auction rate securities from firms such as Merrill Lynch, UBS, Citigroup, Wachovia, and other Wall Street firms. Auction rate securities typically refers to a debt instrument (corporate or municipal bonds) with a long-term nominal maturity for which the interest rate is reset through a Dutch Auction.
The crux of the complaints stems from the lack of disclosures and marketing of auction rate securities. Investors were told that auction rate securities were “cash equivalents” and that the market was extremely liquid. The reality however, was that many firms were propping up the market by participating in the auctions themselves and investor unwittingly took on risks.
After brokerage firms could no longer participate in the auctions, the auction rate securities market essentially collapsed and investor funds have been “frozen” ever since.
State regulators including William Galvin of Massachusetts and New York Attorney General Andrew Cuomo have filed charges against Wall Street firms regarding their sale of auction rate securities. Previously UBS reached an agreement to reimburse municipalities who purchased auction rate securities.
Zamansky & Associates has filed claims on behalf of investors seeking that the firms which sold them auction rate securities not only reimburse their money but award them damages associated with “opportunity costs” and legal fees. We are also representing institutional investors such as corporations who purchased auction rate securities.
We offer free consultations and will continue to file arbitration claims for investors who purchased auction rate securities.