Holders of Auction-Rate Debt Have Choices, but Few Solutions - Wall Street Journal- Cash Plus Money Loan
Following her broker’s advice, Cecilia Walsh put her entire $375,000 divorce settlement into auction-rate securities last December, planning on using the money for her day-to-day needs. Within three weeks she got a margin call, meaning UBS wanted some of its money back because the auction-rate securities in Ms. UBS declines to comment on individual accounts, but a spokeswoman said the firm is working with “a small number” of clients who have been affected by write-downs of student-loan auction-rate securities to help them meet their margin calls. According to the Financial Industry Regulatory Authority, the securities industry’s nongovernmental regulator, about 80 arbitration claims tied to auction-rate securities have been filed to date. Find Out More
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