A bank was ordered to stop selling securities.
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A federal judge ordered Bankers Trust of New York to stop selling short-term securities--mostly so called “commercial paper”--on behalf of corporate clients. U.S. District Judge Joyce Hens Green said the injunction would go into effect March 1 to allow the bank a reasonable time to discontinue its commercial paper placement services in an orderly manner. The ruling followed Judge Green’s Feb. 4 ruling in which she overruled the Federal Reserve Board and said the bank violated the 53-year-old Glass-Steagall Act by distributing securities.
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