Replies to post #296682 on Zeev's Turnips Patch-No Politics (ZEEV)

[qwave]

So Fed, where do you suggest we rich folk put our money?

[marketmaven]

CROOK NEWS: Major Banks face SEC bond probe - Ignore it
By Luisa Beltran, CBS.MarketWatch.com
Last Update: 12:36 PM ET Sept. 16, 2004

NEW YORK (CBS.MW) -- The Securities and Exchange Commission is investigating the auction rate bond practices of Citigroup, Merrill Lynch, Wachovia and UBS. The four banks are underwriting a $435 million offering from Eaton Vance Floating-Rate Income Trust. Eaton Vance, which manages $89.5 billion in funds, is investment adviser for the trust, according to the filing.

The SEC has asked the banks -- Citigroup (C: news, chart, profile), Merrill (MER: news, chart, profile), Wachovia (WB: news, chart, profile) and UBS (UBS: news, chart, profile) -- to voluntarily supply information on their auction rate securities bond practices. The banks are "cooperating" with the investigation, the filing said. (Shredding is complete)

The investigation centers on whether the banks improperly tipped favored clients to what other investors are bidding.
"UBS is one of number of firms contacted by the SEC regarding its review of auction rate securities practices and procedures," a spokeswoman for the bank said Thursday. Citigroup, Merrill and Wachovia declined comment.