Law360, New York (November 03, 2008, 12:00 AM ET) -- As the credit crisis on Wall Street unfolds in dramatic new ways, last winter’s failures in the auction rate securities market have resulted in a series of government investigations, dramatic settlements and innovative class actions against the underwriters and distributors of these securities. In February 2008, the $330 billion market for auction rate securities (“ARS”) nearly shut down.
After decades of successful auctions, February saw hundreds of auctions fail as the ARS market ground almost to a standstill.
This freeze, in which many ARS purchasers found...
2008 ARS Fallout: The Last Wave?
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