State Reminds Auction Rate Securities Investors of Buyback Offers
Wednesday, December 03, 2008 | 10:01am
NASHVILLE - As state securities regulators continue their efforts to provide relief to investors who have seen their funds frozen in the auction rate securities (ARS) market, the Tennessee Department of Commerce and Insurance is reminding ARS investors of their redemption opportunities, which were reached through settlements between securities regulators and multiple Wall Street firms.
“While some repurchases have been made, many more are likely to occur in the months ahead. Investors should be aware that the offers to repurchase their auction rate securities will not be available indefinitely,” said TDCI Commissioner Leslie A. Newman. “Investors with questions about the repurchasing process should contact the firm from which they purchased their auction rate securities.”
A number of Wall Street firms have established hotlines to respond to questions concerning ARS settlements. Those firms and their ARS hotlines are: Bank of America (866-638-4183), Citi (866-720-4802), Deutsche Bank (866-926-1437), Goldman Sachs (888-350-2857), JP Morgan (866-450-8470), Merrill Lynch (888-706-1381), Morgan Stanley (800-566-2273), UBS (800-253-1974) and Wachovia (866-283-7943).
The investigations into possible violations were part of an ongoing effort led by the states to address problems in connection with the offer and sale of ARS securities. Earlier this year, state offices throughout the country began receiving hundreds of complaints from investors. As a result, in April, the North American Securities Administrators Association, of which TDCI is a member, announced the formation of a multi-state task force comprising securities regulators from 12 states and representing all NASAA-member states to investigate whether Wall Street firms had systematically misled investors when placing them in ARS securities.
The Department of Commerce and Insurance works to protect consumers while ensuring fair competition for industries and professionals who do business in Tennessee.