The Securities Arbitration Law Firm of Klayman & Toskes Launches Investigation on Behalf of BNP Paribas Shareholders with Lar...
23 Septiembre 2011 - 9:11AM
Business Wire
The Securities Arbitration Law Firm of Klayman & Toskes,
P.A. (“K&T”), www.nasd-law.com, announced today that it is
investigating claims on behalf of BNP Paribas (OTC: BNPQY.PK)
(“BNP”) shareholders who sustained investment losses due to an
over-concentration of shares in BNP. Trading at $39.80 per share
earlier this year, BNP has declined about 60% and is now trading
around $15.00 per share. Mounting pressure on European banks,
including BNP, is directly linked to Europe’s sovereign debt
crisis. If Greece defaults, losses would increase at European banks
and raise even greater concern over the ability of euro-zone
nations to repay their debts. On September 14, 2011, Moody’s
downgraded the credit ratings of Societe Generale and Credit
Agricole after significant volatility in the markets as investors
worried about their exposure to Greece’s debts. While Moody’s Aa2
rating on BNP remained unchanged, the bank remains under review for
a possible downgrade. Last week, BNP announced plans to sell $96
billion worth of assets to reduce funding needs, shore up capital
and perhaps to avert the downgrade suffered by Societe Generale and
Credit Agricole.
According to Steven D. Toskes of K&T, “What is unfolding in
Europe is similar to what we saw in America in 2008, with the
tightening of the credit markets and the collapse of Lehman
Brothers. With exposure to Greece, European banks have started to
extend less credit to borrowers, and investors are worried about
their exposure to these banks. It’s usually a bad sign when credit
begins to constrict.”
Investors who held BNP stock at a full service brokerage firm
and sustained substantial losses may be able to recover their
losses through the arbitration forum established by the Financial
Industry Regulatory Authority (“FINRA”). FINRA’s Arbitration
Department is where investors, both retail and institutional, go to
seek redress as a result of sales practice violations committed by
their brokerage firm, including claims of over-concentration,
misrepresentation and omission, unsuitable recommendations and
failure to supervise. Investors who held large, concentrated
positions in BNP may have a claim for mismanagement of their
portfolio given the fact that there were risk management strategies
that would have protected the value of the concentrated position in
BNP. Such risk management strategies include stop loss and limit
orders, protective puts and collars. Stop loss orders, limit orders
and protective puts provide an account with downside protection and
an exit strategy should the stock decline in value. A hedge
strategy, known as a “zero cost” collar, would have created a range
of value that the portfolio would have maintained irrespective of
the fluctuation and direction of the underlining stock price.
If you wish to discuss this announcement or sustained investment
losses of $250,000 or more in BNP, please contact Steven D. Toskes
or Jahan K. Manasseh of Klayman & Toskes, P.A., at
888-997-9956, or visit us on the web at http://www.nasd-law.com
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