ARS Market Needs More Rules: Regulators

Law360, New York (September 18, 2008, 12:00 AM EDT) -- More stringent rules, including the disclosure of conflicts of interest and the compensation incentives of broker-dealers, must be implemented to prevent another failure of the auction rate securities market like the collapse in mid-February, securities regulators told Congress on Thursday.

“We need to change the rules of how people play this game or else we'll be back here in five years,” Massachusetts Attorney General Martha Coakley testified before the U.S. House of Representatives Financial Services Committee, which held the hearing to review why the ARS market...
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