Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
CASE CU awarded 1 million in CMOs case
DETROIT (6/11/09)--CASE CU, based in Lansing, Mich., was awarded an arbitration award totaling more than $1 million in a case that alleged Prudential Equity Group misrepresented and omitted facts related to two mortgage-related types of investments. Prudential Equity Group was known as Prudential Securities before it merged with Wachovia Securities LLC. The investments were collateralized mortgage obligations (CMOs) and CMO Interest-Only strips (I/Os). A panel of three Detroit-area arbitrators from the Financial Industry Regulatory Authority, formerly the National Association of Securities Dealers, rendered the award, which included $900,000 in compensatory damages, $78,443 in interest and costs, and another $50,000 in legal fees. The case centered around Prudential's Credit Union Strategy Group, headed by Mark Wickard, a registered representative of Prudential and Wachovia (PRNewswire June 9). The $171.8 million asset credit union alleged that the complicated CMOs and I/Os, which are sensitive to interest-rate changes, were represented as safe and suitable, when in fact they were not. CASE suffered unexpected losses. Announcement of the decision was made by Shepherd, Smith, Edwards & Kantas LLP, a national firm specializing in litigation and arbitration of cases involving securities fraud and brokerage firm misconduct.


RSS





print
News Now LiveWire
Refinance #MarchMadness: Refis drive up mid-March mortgage apps: MBA http://t.co/rTUnlJB516
3 hours ago
UK to invest in #creditunion services for military members http://t.co/iIaBT8vuJW
3 hours ago
Read about @cumagazine's third #creditunion hero http://t.co/SROZMgc0I7
4 hours ago
...#HR1480 passes 58-0; #HR1408 by 49-9; #HR1529 by 48-10; #HR685 by 43-12.
5 hours ago
@FinancialCmte passes @CUNA supported bills: #HR299 by 56-1; #HR601 by 56-0; #HR1195 by 53-5; #HR1265 by 56-2; #HR1259 by 56-2; (cont)...
5 hours ago