Marketwatch reports that Massachusetts has fined Credit Suisse Group $997,480 for improper marketing and sales of auction-rate securities, which triggered complaints from investors who found their money frozen when the auction market for securities crashed. As part of the fine, the Swiss banking giant has agreed to buy back auction-rate securities from Massachusetts investors, Secretary of the Commonwealth William F. Galvin said.
Massachusetts is one of many states that have alleged Credit Suisse presented the securities as safe and liquid as cash, without warning of the increasing risks involved. In January, Credit Suisse paid the state of Texas $1.4 million for its role in the ARS market, which froze in February 2008 leaving investors unable to withdraw money from their accounts.
With this fine, Massachusetts will have received about $17 million from financial firms in ARS cases...
http://www.marketwatch.com/story/massachusetts-fines-creudt-suisse-1-million-2011-08-12
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