Coral Gables, FL (Vocus) October 31, 2010
The Securities Law Firm of Tramont Guerra & Nunez, P.A. (TGN) comments on AmericanWest Bancorp SEC Form 8-K filings, which disclosed the delisting of the stock on March 4, 2010 for bank holding company and the filing for Chapter 11 protection on October 27, 2010. The recent SEC filing disclosed the sale of the bank subsidiary to SKBHC Holdings, Inc. for $6.5 million, subject to a bidding process. Under the Asset Purchase Agreement, a $200 million injection of capital will be required for the banking subsidiary as a condition by regulators for approval of the transaction. The investment will recapitalize the bank subsidiary which will significantly strengthen the bank's balance sheet and restore its compliance with regulatory capital requirements. AmericanWest Bancorp was founded in 1974 and is headquartered in Spokane, Washington. The bank holding company through its bank subsidiary operated 58 branch locations in Washington, Idaho and Utah. Bank lending activities and investment decisions have led to substantial losses for AmericanWest Bancorp shareholders. Investors in AmericanWest Bancorp stock should consider what recourse is available to recover their investment losses in stock held in full-service brokerage accounts. The Financial Industry Regulatory Authority, (FINRA) is a self regulating organization with sales practice rules and regulations that govern the securities industry’s conduct and safeguard the investing public. For investors who accumulated shares in AmericanWest Bancorp, the recent developments represent a significant loss in income and investment.
For many investors, AmericanWest Bancorp stock represented a long term holding acquired through investment, inheritance or as a founding member. Full-service brokerage firms are obligated to give, and investors are entitled to rely upon, brokerage firms for competent, suitable investment advice concerning risk management strategies for concentrated stock positions. When an account is concentrated in a single stock position, it is considered suitable to recommend the implementation of risk management strategies to protect the value of the concentrated position. Brokerage firms are required to supervise the activities in brokerage accounts, losses from securities concentration can be attributed to the failure to adequately supervise the stockbroker and the brokerage account. Recommendations of unsuitable investments and/or maintaining unprotected concentrated stock positions are both causes of action that may be available to investors against their full-service brokerage firm in an individual securities arbitration claim filed with FINRA.
The Securities Law Firm of Tramont Guerra & Nunez, PA, is a nationally recognized, Martindale Hubbell “AV” rated securities law firm. To request a confidential consultation from a TGN attorney to determine whether you have a viable individual securities arbitration claim for investment losses that exceed $250,000 from a full service brokerage account, contact us on our website. To speak directly with an attorney, call (800) 578-0137 and ask for Ben Fernandez, Esquire.