How a 56-year-old engineer's $45,000 loss spurred SEC probe

Bloomberg News
Apr 17, 2014

A Pennsylvania man who lost $45,000 says he was not aware he was investing in risky bank securities known as exchange-traded notes that use derivatives to mimic assets from natural gas to stocks. U.S. regulators are ratcheting up pressure on banks to more clearly explain the risks after investors increased their holdings more than 50 percent to $24 billion since the end of 2012. Robert Whaley, Valere Blair Potter Professor of Finance, is quoted.

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