Finra settles with Northwestern, two others, on auction-rate securities
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 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.
Learn more about reprints and licensing for this article.
