Finra settles with Northwestern, two others, on auction-rate securities

The Financial Industry Regulatory Authority said today it has settled with three more firms over the failed sales of auction-rate securities. So far, FINRA has settled with 12 firms for total fines of $3.2 million. The settlements guarantee the return of $1.3 billion to investors, Finra said in a statement. The latest settlements are with Northwestern Mutual Investment Services LLC of Milwaukee, which was fined $200,000; City Securities Corp. of Indianapolis, which was fined $250,000; and Fifth Third Securities Inc. of Cincinnati, which was fined $150,000. The three firms agreed to buy back auction-rate securities that were part of failed auctions that had been frozen. The firms were accused of not properly disclosing the risk associated with the securities.