SOURCE: Tramont Guerra & Nunez, P.A.

October 17, 2008 08:00 ET

Notice to Fannie Mae Preferred Series S Shareholders Underwritten Through Wall Street Firms From the Securities Law Firm of Tramont Guerra and Núñez, PA

CORAL GABLES, FL--(Marketwire - October 17, 2008) - The Securities Law Firm of Tramont Guerra & Núñez, PA (TGN) makes an announcement to Fannie Mae Preferred Stock, Series S, Shareholders (NYSE: FNM-PS) issued by Fannie Mae (NYSE: FNM). The Fannie Mae Preferred Stock "Series S" class action lawsuit (Case No. 08 CV 8609) filed October 8, 2008, included amongst the named parties the following Wall Street underwriters of the preferred stock issue; Merrill Lynch (NYSE: MER), Goldman Sachs (NYSE: GS), JPMorgan Chase (NYSE: JPM), Bank of America Securities (NYSE: BAC), Citigroup Global Markets (NYSE: C), Deutsche Bank AG (NYSE: DB), Morgan Stanley (NYSE: MS), UBS Securities, (NYSE: UBS), and Bear Stearns (not trading). The class action filed on behalf of investors alleges that the Wall Street firms, who were lead underwriters of the Preferred stock offering, "knew or recklessly disregarded that Fannie Mae was grossly undercapitalized, in violation of federal regulations, because of its overwhelming investments in subprime and Alt-A mortgages." The major Wall Street firms, aware of these facts, nonetheless solicited the purchase of the Non-Cumulative Preferred stock to their clients as a safe stable investment with a 8.25% Fixed-to-Floating Rate.

Brokerage firms are obligated to give, and investors are entitled to rely upon, competent, suitable investment advice in accordance with the Financial Industry Regulatory Authority (FINRA) Rules and Regulations. The recommendation of unsuitable investments and concentration in a particular security or sector are both sales practice violations which qualify for damages from a security arbitration claim filed with the Financial Industry Regulatory Authority (FINRA). In some cases, shareholders must "opt-out" as a class member in order to pursue a securities arbitration claim, otherwise this legal option is not available.

The Securities Law Firm of Tramont Guerra & Núñez, PA is a Martindale Hubbell "AV" Rated, bilingual law firm located in Coral Gables, Florida. To request a confidential consultation from a TGN attorney concerning losses that were the result of sales practice violations in a full service brokerage account, contact us on our website at http://www.stockmarketlosslawyer.com/securities-concentration.htm. To speak directly with an attorney, call (800) 578-0137 and ask for David Chacin, Esquire.

Destination URL: http://www.stockmarketlosslawyer.com/press-releases/class-action-lawsuits-fannie-preferred.htm

Contact Information

  • Contact:
    David Chacin, Esquire
    2100 Ponce De Leon Blvd, Penthouse II
    Coral Gables, Florida 33431
    (800) 578-0137
    Email Contact