E*Trade Faces Regulatory Scrutiny Over Auction-Rate Securities

etrade-building.jpgAccording to regulatory filings with the Securities and Exchange Commission (SEC), earlier this month regulatory authorities sent a “Wells Notice” to E*Trade Securities alleging securities law violations in connection with the firm’s sale of Auction Rate Securities. A Wells Notice is not a finding of wrongdoing, but a letter that describes the securities law violations that staff recommends pursuing. E*Trade contends that the action is unwarranted and that the company is cooperating with the investigation.

See related article: Colorado Securities Commissioner Files Notice of Charges Against E*Trade Securities Regarding Auction Rate Securities