Fidelity Gets A Subpoena On Failed Private Placements

Wednesday, June 08, 2011 07:22
Fidelity Gets A Subpoena On Failed Private Placements

It looks like even Fidelity isn't immune to the current sweep of firms that handled the sales of privately traded securities.

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Fidelity just got served with papers related to the failure of Provident Royalties, one of the most notorious of the private issuers.


The suit doesn't seem to aim to recover any money from Fidelity proper, which didn't sell Provident instruments so much as hold them for its own clearing clients


All the trustee of the now-failed Provident wants is to see exactly who bought and sold these securities.


But simply knowing that the authorities here are willing to dig all the way down to the clearing side of these once-obscure securities at all is a little breathtaking.




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