FINRA ENFORCEMENT: 25 Top Cases
The Financial Industry Regulatory Authority reviewed enforcement case trends at its annual conference in Washington, D.C. this week. Here are 25 top cases from its files.
Mortgage-Backed Securities:
Credit Suisse Securities. Case #200801280890. $4.5 million, and,
Merrill Lynch. Case #2008012808201. $3 million.
FINRA fined Credit Suisse Securities and Merrill Lynch for misrepresenting delinquency data and inadequate supervision in connection with the issuance of residential subprime mortgage
securitizations (RMBS).
FINRA found that in 2006, Credit Suisse misrepresented the historical
delinquency rates for 21 subprime RMBS it underwrote and sold.
FINRA found that Merrill Lynch negligently misrepresented the historical delinquency rates for 61 subprime RMBS it underwrote and sold.
