{"id":705,"date":"2010-06-11T18:05:41","date_gmt":"2010-06-11T18:05:41","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2010\/06\/sec_inquiring_about_wisconsin_1"},"modified":"2022-03-09T16:00:29","modified_gmt":"2022-03-09T22:00:29","slug":"sec-inquiring-about-wisconsin-1","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/sec-inquiring-about-wisconsin-1\/","title":{"rendered":"SEC Inquiring About Wisconsin School Districts Failed $200 Million CDO Investments Made Through Stifel Nicolaus and Royal Bank of Canada Subsidiaries"},"content":{"rendered":"

\t\t\t\tAccording to local new services, the US Securities and Exchange Commission is asking five Wisconsin school districts for additional information about the $200+ million in synthetic collateralized debt obligations that they purchased through Stifel Nicolaus and Royal Bank of Canada subsidiaries in 2006. The CDO’s are now reportedlyworthless.<\/p>\n

The districts collectively bought the CDOs with $35 million of their own money and more than $165 million borrowed from Depfa bank. Since then, the entire investment has failed. In March, Depfa noticed default on the district trusts which had been established for the investments and took the $5.6 million in interest that had been earned since the purchase was made. <\/p>\n

In their 2008 securities fraud lawsuit <\/a>against the investment firms, the districts accused the defendants of deceptive practices and fraud. School officials contend that they were misled into investing in CDO’s because of a Stifel product that was supposed to build trusts for post-retirement teacher benefits. They say that they weren’t told that that they could lose their entire investment because of the 4 \u2013 5% default rate among companies within the CDO. They also contend that they were never advised that their investments included sub-prime mortgage debt, credit card receivables, home equity loans, and other risky investments. <\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

According to local new services, the US Securities and Exchange Commission is asking five Wisconsin school districts for additional information about the $200+ million in synthetic collateralized debt obligations that they purchased through Stifel Nicolaus and Royal Bank of Canada subsidiaries in 2006. The CDO’s are now reportedlyworthless. The districts collectively bought the CDOs with […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3752,3931,3741,3747],"tags":[],"class_list":["post-705","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-royal-bank-of-canada","category-securities-fraud","category-stifel-nicolaus-co-inc"],"yoast_head":"\nSEC Inquiring About Wisconsin School Districts Failed $200 Million CDO Investments Made Through Stifel Nicolaus and Royal Bank of Canada Subsidiaries — Investor Lawyers Blog — June 11, 2010<\/title>\n<meta name=\"description\" content=\"According to local new services, the US Securities and Exchange Commission is asking five Wisconsin school districts for additional information about the — June 11, 2010\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/sec-inquiring-about-wisconsin-1\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"SEC Inquiring About Wisconsin School Districts Failed $200 Million CDO Investments Made Through Stifel Nicolaus and Royal Bank of Canada Subsidiaries — Investor Lawyers Blog — June 11, 2010\" \/>\n<meta name=\"twitter:description\" content=\"According to local new services, the US Securities and Exchange Commission is asking five Wisconsin school districts for additional information about the — June 11, 2010\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards & Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"SEC Inquiring About Wisconsin School Districts Failed $200 Million CDO Investments Made Through Stifel Nicolaus and Royal Bank of Canada Subsidiaries — Investor Lawyers Blog — June 11, 2010","description":"According to local new services, the US Securities and Exchange Commission is asking five Wisconsin school districts for additional information about the — June 11, 2010","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/sec-inquiring-about-wisconsin-1\/","twitter_card":"summary_large_image","twitter_title":"SEC Inquiring About Wisconsin School Districts Failed $200 Million CDO Investments Made Through Stifel Nicolaus and Royal Bank of Canada Subsidiaries — Investor Lawyers Blog — June 11, 2010","twitter_description":"According to local new services, the US Securities and Exchange Commission is asking five Wisconsin school districts for additional information about the — June 11, 2010","twitter_misc":{"Written by":"Shepherd Smith Edwards & Kantas, LLP","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/sec-inquiring-about-wisconsin-1\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/sec-inquiring-about-wisconsin-1\/"},"author":{"name":"Shepherd Smith Edwards & Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"SEC Inquiring About Wisconsin School Districts Failed $200 Million CDO Investments Made Through Stifel Nicolaus and Royal Bank of Canada Subsidiaries","datePublished":"2010-06-11T18:05:41+00:00","dateModified":"2022-03-09T22:00:29+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/sec-inquiring-about-wisconsin-1\/"},"wordCount":379,"articleSection":["Financial Firms","Royal Bank of Canada","Securities Fraud","Stifel, Nicolaus, & Co. 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