Securities News Releases

Wednesday, July 21, 2010
Contact: Laura Egerdal, (573) 526-0949
Contact: Abe Rakov, (573) 526-4734

Carnahan Reaches Agreement with Goldman Sachs that Returns up to $60 Million to Missourians

Case finalizes office's 15th auction rate securities settlement

Jefferson City, MO - Secretary of State Robin Carnahan today announced that Wall Street giant Goldman, Sachs & Co. will repurchase up to $60 million in auction rate securities from Missouri investors. Overall, Carnahan and her staff in the Securities Division have returned more than $1.5 billion to Missourians through 15 auction rate securities settlements since the $330 billion market melted down in February 2008.

“The 2008 auction rate securities meltdown left Main Street investors without access to investments that they were told were just like cash,” Carnahan said.  “My office will continue working hard to provide relief to investors hurt by auction rate securities schemes so they can get on with their lives.”

When the auction rate securities market collapsed, Missouri investors held $60,670,000 worth of the illiquid securities at Goldman Sachs. This consent order requires Goldman to repurchase auction rate securities held by Missouri individuals and small businesses, and provides other important investor relief. As a part of a global auction rate securities settlement, Goldman agreed to pay $22.5 million to the states involved, more than $130,000 of which will go to the Missouri Investor Education and Protection Fund.

The Missouri Securities Division still has open and active investigations into the auction rate securities activities and sales practices of several firms around the nation, including online and retail brokerages.

For more information regarding investments and fraud protection, visit the Secretary of State's online Missouri Investor Protection Center at www.MissouriSafeSavings.com or call the toll free Investor Protection Hotline at 1-800-721-7996.

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