Royal Bank of Canada will return $30 million to five Wisconsin districts - including Whitefish Bay - under SEC settlement.
The Whitefish Bay School District could recover some of its failed investment from at least one of the two firms that are now facing a lawsuit from the district and charges from the US Securities and Exchange Commission. The SEC announced Tuesday that it is charging “RBC Capital Markets LLC for misconduct in the sale of unsuitable investments to five Wisconsin school districts and its inadequate disclosures regarding the risks associated with those investments,” a news release states. However, the company agreed to settle the charges involving about $37.3 million of funds from area school districts. RBC Capital Markets agreed to settle the case by paying $30.4 million, which will be split among the five school districts. "The sales took …
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Whitefish Bay School District
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School district's legal counsel meeting with Stifel Financial Corp. and Royal Bank of Canada.
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Saturday, July 30, 2011
The legal counsel representing Whitefish Bay School District in a lawsuit has plans to engage in settlement talks with the financial institituions they claim bilked them out of money. Whitefish Bay is one of five Wisconsin school districts – including Waukesha, West Allis-West Milwaukee, Kenosha and Kimberly – suing Stifel Financial Corp. and other financial institutions, alleging the districts were misled when making $200 million in investments, which have drastically decreased in value. The school districts estimated in January 2010 that the investments were worth less than $10 million. According to a report in the Milwaukee Journal-Sentinel, Stephen Kravit, one of the attorneys representing the districts, said the schools are engaged in…
235301
11:42 pm on Tuesday, September 27, 2011
Here's a nice overview of the way this played out: http://www.nytimes.com/2008/11/02/business/02global.html?pagewanted=1 Patch, can we please have a more in depth rundown of how this decision played out, who was involved? This would be a huge service to the WFB community to understand why this happened so that we can avoid it in the future. more ›