• Fulbright & Jaworski L.L.P. Forms Auction-Rate Securities Taskforce
  • April 16, 2008 | Authors: Gerard G. Pecht; Daniel J. Pirolo
  • Law Firm: Fulbright & Jaworski L.L.P. - Houston Office
  • Yet another example of the fallout from the subprime collapse is the current liquidity crisis in auction-rate securities. Following on the heels of the downgrade or threatened downgrade of monoline bond insurers by the credit rating agencies, the market for auction-rate securities became illiquid, preventing many retail and institutional investors from moving their funds out of the securities that had been marketed as cash equivalents.