Thursday, March 28, 2024
Hawai'i Free Press

Current Articles | Archives

Saturday, October 1, 2011
Maui County Settles Dispute with Merrill Lynch Over Student Auction Rate Securities
By News Release @ 3:57 AM :: 8500 Views :: Kauai County, DHHL, Energy, Environment

Maui County Settles Dispute with Merrill Lynch Over Student Auction Rate Securities

News Release from County of Maui

WAILUKU, Maui, Hawaii – Mayor Alan Arakawa is pleased to announce that the County of Maui has reached a resolution regarding the purchase of $32 million in student loan auction rate securities from Merrill Lynch.

As part of the agreement with Corporation Counsel and Merrill Lynch, Pierce, Fenner & Smith Inc, Merrill Lynch has agreed to buy back the County’s full investment. The issue has been ongoing ever since the County filed claims against Merrill Lynch with the Financial Industry Regulatory Authority (FINRA) along with a lawsuit against Merrill Lynch in federal court in February 2010.

“This resolution means the County can reinvest these funds short-term and later use them for our Capital Improvement Projects,” said Mayor Arakawa. “This is all thanks to the hard work of Corporation Counsel Pat Wong along with support from Finance Director Danny Agsalog.

“We have a good team here and I’m proud of their work regarding this matter.”

Wong said the following terms were reached as part of the agreement:

1) Merrill Lynch will buy at full par value, and with no loss to the principal amount of the County’s investment, the $32 million of SLARS remaining in the County’s Merrill Lynch account.

2) Merrill Lynch will pay the County of Maui $44,500.00 for the realized losses that resulted from the September 2009 sale of $12.2 million of SLARS at a discount to par value.

3) The County has released all pending claims against Merrill Lynch and any affiliated entities or individuals in connection with its investment in SLARS, and Merrill Lynch admits no wrongdoing.

4) Merrill Lynch and County of Maui will each be responsible for their own fees and costs in this matter, except Merrill Lynch will be responsible for the total amount of any FINRA fees and costs not already assessed by FINRA.

“I’d like to thank Merrill Lynch and their attorneys for helping us to resolve this matter once and for all,” Wong said. “Their cooperation saved taxpayers time and money.”

Finance Director Agsalog added that "The County’s objectives in this case have always been safety and liquidity.

“I'm glad that we can put this in the past so that we can plan for the future."

---30---

Related: UH Manoa activist sold Hawaii controversial Student Loan Bonds

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Moms for Liberty

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT