Goldman Sachs Joins Others In $5M Settlement With Colorado
Fred Joseph, the Colorado Securities Commissioner, announced a settlement agreement with Goldman Sachs relating to allegations that the firm made misleading representations to investors regarding the sale of auction rate securities (ARS), as reported in Investment News. Under the terms of the agreement, Goldman Sachs has agreed to buy back in excess of $5 million worth of auction rate securities from Colorado investors who found themselves unable to sell their securities after the market froze in February 2008.
The settlement concludes the investigation by the Colorado securities regulators into the marketing and sale of auction rate securities (ARS) as being safe, secure, highly liquid investments that were suitable alternatives to cash. This is the 10th settlement that has been finalized with the Colorado Securities Commissioner. Other settling firms were Deutsche Bank, Citigroup, Bank of America, Credit Suisse, JP Morgan Chase, Merrill Lynch, RBC Capital Markets UBS and Wachovia.