SunTrust Fined for Auction Rate Securities Practices

July 31, 2011

According to the Securities Law Prof Blog, FINRA fined SunTrust in connection with its sales of auction rate securities.  The blog reports that:

SunTrust RH and SunTrust IS used advertising and marketing materials that were not fair and balanced, and did not provide a sound basis for evaluating all the facts about purchasing ARS. Specifically, the materials did not contain adequate disclosure of all the risks of ARS, including adequately disclosing the risk that ARS auctions could fail, rendering the investments illiquid for substantial periods of time. Both firms failed to maintain adequate supervisory procedures and training concerning their sales and marketing of ARS.

The FINRA news release states that:

as part of the settlements, the firms will participate in a special FINRA-administered arbitration program for eligible investors to resolve investor claims for consequential damages.

Salas Wang LLC would be happy to speak to any investors that were invested in SunTrust auction rate securities.

You can contact us here.


{ 0 comments… add one now }

Leave a Comment

Previous post:

Next post: