MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Wednesday, August 20, 2008 Galvin Wants Fido to Buy Back Auction-Rate Securities Fidelity is in the news again Wednesday morning, but just as in a few days ago (see The MFWire, August 18, 2008), the news does not concern its mutual fund business. Massachusetts Secretary of State William Galvin penned a letter to Fidelity Chairman Ned Johnson, urging his company to buy back auction-rate securities that its brokerage unit sold to investors, Bloomberg reports. "It is my hope that Fidelity will follow the industry trend and promptly repurchase these securities that it has sold to its customers, many of whom now find themselves unable to access money that they thought was as liquid as cash," Galvin wrote. Fidelity spokesman Vin Loporchio pointed out that Fidelity is "neither the issuer, underwriter or the sponsor" of auction-rate securities, adding: "We believe the underwriters should stand behind their securities." Galvin's letter comes just days after New York State Attorney General Andrew Cuomo said he was widening his investigation of the auction-rate market to include Fidelity and Schwab. Printed from: MFWire.com/story.asp?s=19088 Copyright 2008, InvestmentWires, Inc. All Rights Reserved |