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Brad Bennett

FINRA Fines Citigroup $3.5 Million for Inaccurate RMBS Data

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The Financial Industry Regulatory Authority (FINRA) has announced that it has fined Citigroup Global Markets Inc. $3.5 million for providing inaccurate mortgage performance information, supervisory failures and other violations in connection with sub-prime residential mortgage-backed securitizations (RMBS). Issuers of RMBS are required to disclose historical performance information for past securitizations that contain mortgage loans similar to those in the RMBS being offered to investors.Click to continue

FINRA Hits Barclays Capital With $3 Million Fine for Sub-Prime MBS Misrepresentations

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The Financial Industry Regulatory Authority (FINRA), the independent regulator of all securities firms doing business in the United States, has announced that it has fined Barclays Capital Inc. $3 million for misrepresenting delinquency data and inadequate supervision in connection with the issuance of residential sub-prime mortgage securitizations (RMBS). Issuers of sub-prime RMBS are required to disclose historical performance information for past securitizations that contain mortgage loans similar to those in the RMBS being offered to investors.Click to continue

FINRA Fines Northern Trust Securities for Not Monitoring Collateralized Mortgage Obligations

The Financial Industry Regulatory Authority (FINRA) has announced that it has fined Northern Trust Securities $600,000 for deficiencies in supervising sales of collateralized mortgage obligations (CMOs) and failure to have adequate systems in place to monitor certain high-volume securities trades. FINRA found that from October 2006-October 2009, Northern Trust failed to monitor customer accounts for potentially unsuitable levels of concentration in CMOs, in large part because it used an exception reporting system that failed to capture or analyze substantial portions of the firm’Click to continue

FINRA Fines Credit Suisse and Merrill Lynch for Misrepresentations of Sub-Prime Securitizations

The Financial Industry Regulatory Authority (FINRA) has announced that it has fined Credit Suisse Securities (USA) LLC $4.5 million, and Merrill Lynch $3 million for misrepresenting delinquency data and inadequate supervision in connection with the issuance of residential sub-prime mortgage securitizations (RMBS). Issuers of sub-prime RMBS are required to disclose historical performance information for past securitizations that contain mortgage loans similar to those in the RMBS being offered to investors.Click to continue

FINRA Fines Southwest Securities $650,000 for Compliance Short Selling Violations

The Financial Industry Regulatory Authority (FINRA) has announced that it has fined Southwest Securities Inc., of Dallas, a penalty in the amount of $650,000 for deficiencies in due diligence, risk assessment and written supervisory procedures that permitted one of its correspondent firms, Cutler Securities, to create risk for Southwest through improper short selling. FINRA also required Southwest to designate a risk management officer to identify and manage the risks associated with its correspondent clearing services business.Click to continue

FINRA Orders Schwab to Pay $18 Million to Investors for MBS Market Trouble

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The Financial Industry Regulatory Authority (FINRA) has announced that it has ordered Charles Schwab & Company Inc., to pay $18 million into a Fair Fund to be established by the Securities & Exchange Commission (SEC) to repay investors in YieldPlus, an ultra short-term bond fund managed by Schwab's affiliate, Charles Schwab Investment Management. The $18 million consists of the $17.5 million in fees that Schwab collected for sales of the fund, plus a fine of $500,000, both of which will have been designated as restitution to customers.Click to continue