E-Trade Could Face FINRA Action Over ARS Sales

Law360, New York (February 23, 2011, 8:25 PM EST) -- The Financial Industry Regulatory Authority may discipline online broker E-Trade Financial Corp. over its sales of auction rate securities, the company announced Tuesday.

E-Trade received a Wells notice from FINRA staff stating they had made a preliminary determination to recommend that disciplinary action be brought against the online brokerage company, according to E-Trade's 10-K annual report filed with the U.S. Securities and Exchange Commission.

The company said that it believed disciplinary action was not warranted and that E-Trade would cooperate with FINRA in the meantime and...
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