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Category Archives: Financial Crisis

Citigroup Agrees to Settle Bond Class Action for $730 Million

By McCabe Rabin, P.A. |

Citigroup, Inc. has agreed to resolve a class action lawsuit filed in 2008 by investors who purchased Citigroup bonds and preferred stock between May 2006 and November 2008. Last year, Citigroup settled a similar class action lawsuit brought by stock investors. The class plaintiffs alleged that Citigroup made material misstatements and omissions concerning the… Read More »

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Precedent Setting Bankruptcy By Public Pension Plan

By McCabe Rabin, P.A. |

In what appears to be an unprecedented move for a public defined-benefit plan, a government employee pension plan has filed for bankruptcy protection. The Northern Mariana Island Retirement Fund (“Fund”) filed for Chapter 11 Bankruptcy protection in the U.S Bankruptcy Court for the Northern Mariana Islands on Tuesday. The Fund was established in 1980… Read More »

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Founder of Defunct Firm Brookstreet Securities Hit With $10 Million Fine

By McCabe Rabin, P.A. |

Stanley Brooks (“Brooks”), founder of defunct brokerage firm Brookstreet Securities (“Brookstreet”), was assessed a penalty of $10 million for securities violations in connection with the sale of collateralized mortgage obligations (“CMOs”) from 2004 to 2007. The penalty is believed to be one of the largest assessed against an individual for activities related to the… Read More »

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SIPC ANNOUNCES THE LIQUIDATION OF MF GLOBAL UNDER THE SECURITIES INVESTOR PROTECTION ACT (SIPA)

By McCabe Rabin, P.A. |

MF Global Holdings Ltd. and its broker-dealer arm MF Global, Inc. filed for bankruptcy protection earlier this week in New York after dealings with the firms were suspended by the Federal Reserve Bank of New York and the major exchanges. JPMorgan Chase was listed in the bankruptcy filing as the largest unsecured creditor with… Read More »

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SEC Settles With Countrywide’s Former CEO for $67.5 Million

By McCabe Rabin, P.A. |

The SEC has settled with prior Countrywide Financial CEO Angelo Mozilo for $22.5 million in penalties to settle claims that he and two other former Countrywide executives misled investors about the subprime mortgage crisis. The settlement permanently prohibits Mozilo serving as an officer or director of a publicly traded company. Mozilo’s financial penalty is… Read More »

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