SEC Whacks 3 Auction Rate Securities Players

MANHATTAN (CN) – Banc of America Securities, RBC Capital Markets and Deutsche Bank Securities failed to warn their customers of the increasing risks in the auction rate securities markets, which froze in February 2008, the SEC says. BofA customers had $10 billion in illiquid notes when the market collapsed, RBC customers held $8.8 billion, and Deutsche Bank customers held $1.3 billion, the SEC says in separate federal complaints.     The SEC seeks unspecified civil penalties and an injunction telling the defendants not to do it again.