Major brokerage firms, ABN AMBO Bank N.V., AIG, Bank of America, Barclays Bank, Bear Stearns, Charles Schwab, Citigroup, Countrywide Securities, Credit Suisse, Deutsche Bank, E-Trade, Harris National Bank, Incaptial LLP, JP Morgan Chase, Lehman Brothers, Merrill Lynch, Morgan Keegan, Morgan Stanley, RBC Royal Bank, Societe Generale, UBS Fraud, Wachovia, represented and sold principal protected notes (PPN) as safe and secure investment vehicles. We allege that these banks specifically targeted conservative, risk-averse investors who were seeking to preserve their capital and generate income. In fact, these notes subjected investors to significantly more risk than was disclosed.
These brokers and investment banks pushed their sales representatives to dump these products on their own retail. As early as 2005, industry regulators from the Financial Industry Regulatory Authority (FINRA) raised concerns about misrepresentations regarding the safety and complexity of principal protected notes and other structured investment products.
Holders of these structured securities and principal protected notes (PPNs) face significant losses, including their entire principal investment.
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