FINRA has arbitration process for auction-rate debt
WASHINGTON (Reuters) - The U.S. brokerage watchdog has established a special process for resolving claims involving auction-rate securities in its arbitration forum.
The Financial Industry Regulatory Authority (FINRA) said on Thursday that qualifying investors will have the option of having their claims heard by a three-person panel of arbitrators.
The two public arbitrators and one nonpublic arbitrator would not be affiliated with a firm that recently sold auction rate securities, FINRA said.
More than 170 cases involving auction-rate securities have been filed with FINRA.
FINRA's announcement comes as Citigroup Inc agreed to buy back more than $7 billion of illiquid auction-rate securities and pay a $100 million civil fine to settle charges it fraudulently misled investors about the debt's risk.
(Reporting by Rachelle Younglai; Editing by Andre Grenon)
© Thomson Reuters 2009 All rights reserved
Commentary
Do these people have reason to smile?
Will the dreary economic New Normal create a political opening for Lou Dobbs, Michael Bloomberg or Sarah Palin -- or someone else with high visibility, deep pockets or both? Blog
Honduras goes to polls.