Stifel Nicholaus Pays $5.4 Million In Auction Rate Securities Case

In yet another settlement with New Jersey’s Bureau of Securities, Stifel Nicholaus & Company agrees to repurchase $5.4 million in auction rate securities (ARS) from New Jersey investors. As in other cases, investors were told that the securities were as safe as cash and they could always have access to their money. In fact, the securities were actually long term investments subject to a complex auction process that failed in February 2008, exposing the illiquidity and lower interest rates than promised. This is the seventh settlement with New Jersey, which concluded that investors’ losses stemmed from the lack of disclosure by the firm rather than any fault of their own.

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