The Irredeemable Relevance Of SEC Enforcement Action

Law360, New York (February 21, 2012, 1:37 PM EST) -- In November 2011, the U.S. Securities and Exchange Commission (SEC) issued a cease-and-desist order against Fifth Third Bancorp in connection with its redemption of a class of its trust preferred securities.[1]

While these securities and the circumstances of their redemption are unusual, this order is relevant to any company that plans to redeem any of its publicly held securities, such as utility or other energy companies that commonly have redeemable debt securities or preferred stock outstanding.

Background

According to the order, the facts were simple. The...
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