A task force of state securities regulators is sending broker-dealers subpoenas and information requests as it examines their conduct in the frozen auction rate securities (ARS) market. Coordinating the effort is the North American Securities Administrators Association (NASAA), whose president, Karen Tyler, says that she doubts the market will ever function again.
If violations are uncovered, the state probe could lead to sanctions and other penalties, including rescission--allowing investors to recover their investment plus interest--according to Tyler, who is also the North Dakota securities commissioner.
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