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INVESTOR ALERT: Zamansky LLC Announces Investigation of Bank-Issued Structured Notes Linked To Oil Prices And Foreign Market Indexes
NEW YORK–(BUSINESS WIRE)–Zamansky LLC announces it is investigating potential claims by investors with brokerage accounts over structured notes issued by Barclays Plc (NYSE:BCS), Morgan Stanley (NYSE:MS), Deutsche Bank (NYSE:DB), UBS, A.G. (NYSE:UBS), Citigroup (NYSE:C), Bank of America Merrill Lynch (NYSE:BAC), JPMorgan Chase & Co. (NYSE:JPM), Credit Suisse (NYSE:CS), BNP Paribas and other financial firms. The structured notes often have unique and exotic names such as: Accelerated Return Notes; Strategic Return Notes; Capped Leverage Return Notes; Target Term Securities; Market Linked Notes; E-Tracs; Return Optimization Notes; Auto-Callable Securities; Performance Leveraged Upside Securities (PLUS); and Equity Linked Securities (ELKs).
The investigation is focused on structured notes issued by these brokerage firms linked to oil and gas prices, which have suffered substantial losses over the last two years. For instance, in April 2014, Barclays Plc issued $104.6 million of 14-month notes tied to WTI crude oil prices, which have since suffered 40% losses. The investigation is also focused on structured notes linked to the MSCI EAFE index, Brazil and other distressed foreign markets and indexes. As investments in these sectors have crashed, structured products linked to performance have lost significant value for investors.
This investigation follows the August 24, 2015 Risk Alert issued by the Securities and Exchange Commission (“SEC”), which analyzed 26,600 structured product transactions totaling $1.25 billion, and found a significant number of instances in which the investments were unsuitable for the purchasers’ investment objectives and needs.. The SEC also found that brokerage firms’ supervision of sales of structured products and their supervisory procedures were weak and insufficient.
Jake Zamansky, securities fraud attorney, believes that the SEC findings confirm what he has seen over the years. He believes that structured notes, particularly those tied to volatile markets or oil prices, are too risky and unsuitable for retirees or investors seeking conservative or moderate risk investments. He believes that brokerage firms issue and sell structured notes to generate fees, commissions and trading profits, often without regard to whether they are suitable for investors who are advised to purchase them.
What Structured Note Investors Can Do
If you would like to have your structured note investment reviewed to determine if you were sold an unsuitable investment, or to discuss your legal rights and how you might recover your losses, you may, without obligation or cost to you, email Jake Zamansky atjake@zamansky.com or call the law firm at (212) 742-1414.