Stock Market Fraud Attorneys Blog

Representing Investors Nationwide

September 15, 2008

According to various news outlets, Bank of America reached a deal to buy Merrill Lynch for $29 a share. At $44 billion, Merrill would be sold at about two-thirds of its value of one year ago, and half its all-time peak value of early 2007.

The two financial giants were first reported to be in talks about a possible merger by the Wall Street Journal yesterday. The merger agreement was confirmed in an article in today’s on-line journal.

Bank of America had considered buying... Read More

August 29, 2008

An August 22, 2008 Memphis Business Journal article chronicles life at Morgan Keegan post Kelsoe and the RMK fund meltdown.

In essence, Morgan Keegan has transferred management of the seven distressed funds from in-house manager Morgan Asset Management (MAM) to outside boutique manager Hyperion Brookfield Asset Management (Hyperion). Hyperion reportedly specializes in turning around distressed mutual funds but most observers hold out little hope these funds will ever return to form.... Read More

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August 23, 2008

According to an August 22, 2008, Memphis Business Journal article Morningstar senior fund analyst, Lawrence Jones, has cited the Morgan Keegan & Co. RMK Select and RMK Closed-End Funds as an “investment manager case study” on how illiquid, thinly traded securities can blow up a mutual fund.

This revelation is not news to purchasers of the RMK Select High Income Fund (MKHIX), the RMK Select Intermediate Bond Fund (MKIBX), RMK Select Short Term Bond Fund (MSBIX), RMK Select High... Read More

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August 16, 2008

According to an August 15, 2008 InvestmentNews article, the brokerage and capital markets divisions of Wachovia Corp. have agreed to repurchase $8.8 billion in auction rate securities. The agreements, like those reached with Merrill Lynch, UBS, Citigroup, Morgan Stanley and JP Morgan Chase, came after investigations by state regulators into the sales practices surrounding these securities. Billions of investor dollars have been frozen since the market for ARS collapsed in February.

... Read More

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August 08, 2008

According to a August 8, 2008, Business Week article, Memphis brokerage firm Morgan Keegan is under fire for allegedly failing to disclose the subprime risks of seven mutual funds. The subprime securities that created massive losses to Wall Street investment firms have created tragic losses for individual investors as well.

Regulators in at least five states are investigating whether the Memphis brokerage firm failed to disclose the level of risk associated with seven mutual funds... Read More

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August 07, 2008

New York Attorney General Andrew Cuomo issued a press release indicating he has reached a settlement worth more than $7 billion with Citigroup that requires the company to buy back auction-rate securities from about 40,000 customers in the U.S.

In order to garner the settlement, the AG had threatened to charge the Citi with fraudulent sales practices regarding auction-rate securities as well as the destruction of key documents.

One of the terms of the settlement requires... Read More

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August 04, 2008

According to a newly released Bloomberg article, four days before Merrill Lynch & Co. (ML) stopped supporting the auction-rate securities market and left and thousands of individual investors stuck with securities they couldn’t sell, the firm’s analysts recommended clients buy the toxic paper.

For example, one analyst wrote in a Feb. 8, 2008 research note “Reports of the imminent demise of the auction market seem to be greatly exaggerated, again.” The same analyst also remarked “... Read More

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August 03, 2008

According to an article in the July 28, 2008 Wall Street Journal, Merrill Lynch (ML) announced a series of moves intended to lower the firm’s risk exposure and further strengthen its balance sheet.

In a further blow to investors already reeling from subprime related investment losses, ML intends to raise approx. $8.5 billion by issuing new shares thereby diluting the stock value of current shareholders by approximately 34%. Sadly this story is looking more and more like Bear Stearns... Read More

August 03, 2008

According to Market Wire, Jul 29, 2008 Hyperion Brookfield Asset Management, Inc. (“Hyperion Brookfield”) announced its appointment as Investment Advisor to certain funds that were previously managed by Morgan Asset Management, Inc., investment adisory arm of Morgan Keegan, Inc. (collectively, the “Funds”).

Hyperion Brookfield was approved by stockholders and, effective today, has assumed its duties as Investment Advisor to the following Funds:
- RMK Advantage Income Fund, Inc... Read More

August 03, 2008

According to an August 1, 2008 Dow Jones Newswire, New York State Attorney General Andrew Cuomo said Friday he intends to take legal action against Citigroup Inc. for their marketing and sales of auction-rate securities.

According to Cuomo’s office, Citigroup “repeatedly and persistently” made material misrepresentations and omissions in its underwriting, distribution and sale of auction-rate securities.

Citigroup represented that auction-rate securities were safe, liquid, and... Read More

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