GO
Loading...

Enter multiple symbols separated by commas

Merrill Faces Questions on Auction Debt

Merrill Lynch has received requests from governmental agencies for information regarding auction-rate securities, including the recent failure of auctions, and is cooperating with the requests, the company said Tuesday.

The $330 billion market for the securities -- long-term bonds whose rates are reset periodically -- froze this winter.

Investors flooded dealers with paper backed by bond issuers whom they feared would lose their 'triple-A' credit ratings.

As a result, many municipal bond issuers, including ones whose creditworthiness was considered sound, were forced for several weeks to pay unusually high interest rates, often reaching well into double digits.

Merrill , an investment bank and brokerage, disclosed the information requests in a Securities and Exchange Commission filing.

Banks

  • Attorney General Loretta Lynch enters a packed news conference at the U.S. Attorneys Office of the Eastern District of New York following the early morning arrest of world soccer figures, including officials of FIFA, for racketeering, bribery, money laundering and fraud on May 27, 2015 in New York City.

    U.S. legal authorities said they have the jurisdiction to go after some FIFA officials for corruption charges.

  • Jeffrey Lacker, president of the Federal Reserve Bank of Richmond.

    Policymakers must ensure that creditors must be willing to let firms fail in order to restore discipline, a top Fed official said.

  • Treasury Secretary Jack Lew testifies before the Senate Finance Committee on Capitol Hill, February 5, 2015 in Washington.

    U.S. Treasury Secretary Jack Lew said conversations between central bankers in the U.S. have shown they understand the need to clearly communicate.