Local Media Now Speculating That Securities America Is Fighting For Its Life

Tuesday, March 22, 2011 22:31
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Local Media Now Speculating That Securities America Is Fighting For Its Life

Tags: compliance

In the wake of Securities America's failed attempt to settle roughly $400 million in client claims over a now-defunct private debt placement, newspapers in its native Nebraska have turned to fretting over the big broker-dealer's demise.

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The Omaha World-Herald has started following the Securities America story very seriously now that it looks like the firm's corporate parent Ameriprise will either have to bail it out or let it die.

 

Amerprise spokespeople have maintained that Securities America should not be blamed for the failure of Medical Capital Holdings, which issued debt that the company bought for clients -- on a scale of roughly $600 million.

 

However, a federal judge has now ruled that the firm was responsible for better due diligence and so stands to absorb the losses on its own -- separately or in connection to Ameriprise.

 

 

 

 

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