SEC: Cali. IOUs should be treated as securities

Posted on July 10, 2009 by Les Jones

Sacramento Business Journal – SEC rules that IOUs should be treated as securities:

The U.S. Securities and Exchange Commission on Thursday issued its opinion that California’s IOUs should be treated as securities under federal securities law.

Under that opinion, holders of the notes, which carry a 3.75 percent interest rate, are protected by securities laws that prevent fraud. And it means that people who attempt to make a market in buying and selling the notes may have to be registered as “brokers, dealers or municipal securities dealers, or as alternative trading systems or national securities exchanges.”

The SEC did not make any determination on whether California has the authority to issue or repay the registered warrants.

Any lawyers in the hizzouse?

Previously – Cash4IOUs

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One Response to SEC: Cali. IOUs should be treated as securities

  1. Linoge says:
    July 10, 2009 at 6:17 pm

    Hell with that… I cannot honestly believe that people are actually treating these IOUs as investments. Kalifornistan does not have the money now to repay them, and is not making any movements towards doing so in the future. This should be exciting to watch, and possibly a glimpse into the future…
    [rq=26140,0,blog][/rq]dichotomy