Merrill Lynch to cough up $8.5M to Florida over auction-rate securities

Merrill Lynch &amp; Co. Inc. will pay Florida $8.5 million to settle claims that the brokerage firm's financial advisers misled their clients about auction-rate securities, according to a <a href=http://www.orlandosentinel.com/business/orl-biz-merrill.settles-090109,0,4894709.story>report</a> in the Orlando Sentinel.
NOV 18, 2009
By  Bloomberg
Merrill Lynch & Co. Inc. will pay Florida $8.5 million to settle claims that the brokerage firm's financial advisers misled their clients about auction-rate securities, according to a report in the Orlando Sentinel. The agreement will settle allegations that Merrill's adviser positioned auction-rate securities as secure investment vehicles that were essentially as safe as cash. In February 2008, the auction-rate market collapsed, and investors were left with illiquid holdings. Merrill's agreement with Florida is the state's portion of a $125 million settlement reached with the North American Securities Administrators Association Inc. last August to resolve a national investigation into the sales of such securities.

Latest News

UBS profit beats estimates as Ermotti sees brighter outlook
UBS profit beats estimates as Ermotti sees brighter outlook

Wealth management unit sees inflows of $23 billion.

Evercore to buy advisory firm Robey Warshaw for $196 million
Evercore to buy advisory firm Robey Warshaw for $196 million

Deal will give US investment bank a foothold in lucrative European market.

Gates and Buffett’s Giving Pledge is 15 years old, but many signatories are richer than ever
Gates and Buffett’s Giving Pledge is 15 years old, but many signatories are richer than ever

New report examines the impact that the initiative has had on philanthropy.

Americans stay the course on 401(k) savings despite inflation fears
Americans stay the course on 401(k) savings despite inflation fears

Few feel confident that they will meet their retirement goals.

What advisors need to know about SECURE 2.0’s impact on retirement income planning
What advisors need to know about SECURE 2.0’s impact on retirement income planning

Catch-up contributions, required minimum distributions, and 529 plans are just some of the areas the Biden-ratified legislation touches.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.