Defendant Name: Wachovia Securities, LLC

Defendant Type: Subsidiary of Public Company

Document Reference: LR-21585

Document Details

Legal Case Name SEC v. Wachovia Securities, LLC
Document Name SEC Completes Review of Performance by Citigroup, RBC and Wachovia Under Auction Rate Securities Settlements
Document Date 30-Jun-2010
Document Format Civil Proceeding
Case Number 09-cv-00743
Federal District Court Illinois, Northern District of Illinois
Allegation Type Broker Dealer
Document Summary On June 30, 2010, the SEC published a litigation release regarding this matter. The SEC announced that: "three financial firms that settled the Commission's auction rate securities (ARS) charges against them have satisfied their obligations under their respective settlements and that more than $26 billion has been returned to their ARS customers."

Disgorgement & Penalty Information

Resolutions
Repurchase from customers

Related Documents:

comp20885 05-Feb-2009 Complaint
Complaint
In its Complaint, the SEC stated that: "Wachovia misled its customers about the fundamental nature and increasing risks associated with auction rate securities ('ARS') that it underwrote, marketed and sold. Wachovia and A.G. Edwards & Sons, Inc. ('A.G. Edwards'), whose broker-dealer operations were consolidated into Wachovia, misrepresented to its customers that ARS were safe, highly liquid investments comparable to cash or money market instruments. As a result, numerous customers purchased ARS using funds that they needed to remain available on a short-term basis." In particular, the SEC alleged that: "In late 2007 and early 2008, Wachovia became aware of mounting evidence that the firm and its customers could no longer rely on the historical stability of the ARS market. Investor concerns about the creditworthiness of monoline insurance companies (who insured certain ARS), higher than normal ARS inventory levels at A.G. Edwards, and auction failures in certain segments of the ARS market indicated that the risk of auction failures had materially increased. Wachovia's FAs, nevertheless, continued to market ARS to its customers as highly liquid investments."
LR-20885 05-Feb-2009 Litigation Release
SEC Finalizes ARS Settlement with Wachovia, Providing Over $7 Billion in Liquidity to Investors
The SEC "announced a settlement with Wachovia Securities, LLC that will provide more than $7 billion in liquidity to thousands of customers who invested in auction rate securities (ARS) before the market for those securities collapsed."
2009-17 05-Feb-2009 Press Release--Civil Action
SEC Finalizes ARS Settlement to Provide $7 Billion in Liquidity to Wachovia Investors
The SEC "announced a settlement with Wachovia Securities, LLC that will provide more than $7 billion in liquidity to thousands of customers who invested in auction rate securities (ARS) before the market for those securities collapsed."
court_doc6_09-cv-00743 17-Feb-2009 Court Docket Document
Judgment
On February 17, 2009, Federal District Judge Virginia M. Kendall entered final judgment against Wachovia Securities, LLC pursuant to the consent of Wachovia Securities, LLC.