SEC Sanctions Broker-Dealer In Auction Rate Case

Law360, New York (May 29, 2008, 12:00 AM EDT) -- Texas-based First Southwest Co. has agreed to pay $150,000 to settle the U.S. Securities and Exchange Commission's allegations that the brokerage wrongly intervened in auctions for auction rate securities by placing bids to prevent failed and all-hold auctions.

In a ruling handed down Tuesday, the SEC also censured First Southwest and ordered it to cease and desist from violating the Securities Act.

First Southwest underwrote and managed a limited number of auctions for auction-rate securities from at least Jan. 1, 2003, through June 30, 2004, according...
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