ETF Trends
08-01-2008, 06:10 PM
ETF Trends - Keeping a Grip on Exchange Traded Funds (ETFs)
http://www.etftrends.com/wp-content/uploads/2008/08/privateeye.jpgCitigroup’s (C (http://finance.yahoo.com/q?s=c)) imminent charges could wind up packing a wallop for financial exchange traded funds (ETFs).
New York Attorney General Andrew Cuomo has said he plans to charge the bank with fraudulently marketing and selling auction-rate securities, as well as destroying subpoenaed documents, report Joseph A. Giannone and Jonathan Stempel for Reuters (http://biz.yahoo.com/rb/080801/citigroup_subpoenas.html).
Cuomo has left open the possibility for a settlement, but any resolution is going to require that Citigroup buy back the affected debt at face value, pay damages and a penalty.
Other financial institutions are under the microscope of regulators, who are looking into auction-rate sales practices. They include many of the top holdings of financial ETFs, such as Bank of America (BAC (http://finance.yahoo.com/q?s=bac)), Merrill Lynch (MER (http://finance.yahoo.com/q?s=mer)), UBS AG and Wachovia (WB (http://finance.yahoo.com/q?s=wb)).
Some ETFs that could be affected as the investigations progress include:
Financial Select Sector SPDR (XLF (http://finance.yahoo.com/q?s=xlf)): down 25.4% year-to-date; Bank of America, 7.8%; Citigroup, 5.9%; Wachovia, 2.6%
KBW Bank (KBE (http://finance.yahoo.com/q?s=kbe)): down 23% year-to-date; Bank of America, 8.2%; Citigroup, 6.7%; Wachovia, 5.3%
iShares MSCI Switzerland (EWL (http://finance.yahoo.com/q?s=ewl)): down 9.7% year-to-date; UBS AG, 4.6%
iShares Dow Jones U.S. Financial Services (IYG (http://finance.yahoo.com/q?s=IYG)): down 25.3% year-to-date; Bank of America, 8.8%; Citigroup, 7.5%http://www.etftrends.com/wp-content/uploads/2008/08/z8.png
complete story here... (http://feeds.feedburner.com/~r/etftrends-feed/~3/353023121/probe-of-citigroup-and-others-could-hit-financial-etfs.html)
http://www.etftrends.com/wp-content/uploads/2008/08/privateeye.jpgCitigroup’s (C (http://finance.yahoo.com/q?s=c)) imminent charges could wind up packing a wallop for financial exchange traded funds (ETFs).
New York Attorney General Andrew Cuomo has said he plans to charge the bank with fraudulently marketing and selling auction-rate securities, as well as destroying subpoenaed documents, report Joseph A. Giannone and Jonathan Stempel for Reuters (http://biz.yahoo.com/rb/080801/citigroup_subpoenas.html).
Cuomo has left open the possibility for a settlement, but any resolution is going to require that Citigroup buy back the affected debt at face value, pay damages and a penalty.
Other financial institutions are under the microscope of regulators, who are looking into auction-rate sales practices. They include many of the top holdings of financial ETFs, such as Bank of America (BAC (http://finance.yahoo.com/q?s=bac)), Merrill Lynch (MER (http://finance.yahoo.com/q?s=mer)), UBS AG and Wachovia (WB (http://finance.yahoo.com/q?s=wb)).
Some ETFs that could be affected as the investigations progress include:
Financial Select Sector SPDR (XLF (http://finance.yahoo.com/q?s=xlf)): down 25.4% year-to-date; Bank of America, 7.8%; Citigroup, 5.9%; Wachovia, 2.6%
KBW Bank (KBE (http://finance.yahoo.com/q?s=kbe)): down 23% year-to-date; Bank of America, 8.2%; Citigroup, 6.7%; Wachovia, 5.3%
iShares MSCI Switzerland (EWL (http://finance.yahoo.com/q?s=ewl)): down 9.7% year-to-date; UBS AG, 4.6%
iShares Dow Jones U.S. Financial Services (IYG (http://finance.yahoo.com/q?s=IYG)): down 25.3% year-to-date; Bank of America, 8.8%; Citigroup, 7.5%http://www.etftrends.com/wp-content/uploads/2008/08/z8.png
complete story here... (http://feeds.feedburner.com/~r/etftrends-feed/~3/353023121/probe-of-citigroup-and-others-could-hit-financial-etfs.html)