RBC Unit To Pay $30M Over CDO Sales To School Districts

Law360, New York (September 27, 2011, 2:38 PM EDT) -- RBC Capital Markets LLC agreed Tuesday to pay $30.4 million to resolve claims brought by U.S. securities regulators who say the firm sold unsuitable investments to five Wisconsin school districts without warning them of the risks associated with the complex financial products.

In an administrative action, the U.S. Securities and Exchange Commission accused RBC of selling the school districts $200 million worth of notes tied to the performance of synthetic collateralized debt obligations. The school districts, which had created special trusts to buy the investments, contributed...
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