According to Reuters, in its quarterly report filed with the Commission, the New York-based company said it told the SEC that its Mellon Financial Markets LLC unit placed orders on behalf of issuers to buy their own auction-rate debt. It said the Mellon unit is cooperating with the SEC.
Regulators are examining auction-rate practices of at least a dozen banks and brokerages, Reuters said.
State regulators have accused firms of fraud for marketing the securities as highly liquid and safe. Among firms charged with wrongdoing are UBS and Merrill Lynch (See UBS Auction-Rate Securities Bill Grows ).
« Northern Trust Taps CTA Alum for Institutional Services Post