Exact(12)
Issuers would also benefit by renegotiating contracts to eliminate payments for unsold securities and failed auctions.
You see, there weren't ever supposed to be failed auctions, so the penalties weren't supposed to be relevant.
The latest European 3G auction debacle mimics failed auctions late last year in Italy and Switzerland.
The company said it still owns $127.2 million of the securites, which have experienced multiple failed auctions.
The failed auctions are tied to and exacerbating the larger problems in the financial markets.
Not all auction-rate securities with failed auctions are resetting to very high rates.
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"We are so disappointed," Simonds said of the failed auction.
The failed auction increased the likelihood that Latvia would have to devalue its currency and roiled currency and financial markets.
(The Port Authority, which had a failed auction last week, just saw the interest rate it pays leap from 4.3percentto20percentcent).
Besides the failed auction, the central bank found that gilts were being dumped into the APF at below-market prices on April 6th.
The failed auction left the government without a backup plan for the three insurers, which have only 1.6percentt of the life insurance market.
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