The SEC also found that the underwriting firms
"failed to conduct adequate due diligence to identify the misstatements and omissions before offering and selling the bonds to their customers."
Finally, three business days before the scheduled sale date, the person in charge of competitive bidding at one of the major municipal bond underwriting firms
made a public statement, which was published the following day in The Bond Buyer, announcing that the firm would not participate in Pittsburgh's sale and, furthermore, it would not support the issue in secondary market trading.
Affiliated directors from prestigious underwriting firms
held four seats or 13% of the lead underwriting seats.
whether real or apparent, is that underwriting firms
The Securities and Exchange Commission recently hit Edward Jones with a $20 million fine for overcharging investors for the bonds sold to them and in June charged 36 municipal underwriting firms
for fraudulent offerings.
I calculate market share of the seasoned equity market over the period of the study, crediting underwriting firms
created by the combination of existing firms with the volume of their predecessors.
The underwriting firms
also allegedly failed to conduct adequate due diligence to identify the misstatements and omissions before offering and selling the bonds to their customers.