Are you, your company, your trust/estate or someone in your network frozen in an Auction Rate Security ("ARS")? Help may by on the way from Mansfield Tanick & Cohen. We provide free evaluations to investors stuck in any ARS, and if positive, we will consider a partial or hybrid contingency fee in representing our investor clients in FINRA (formerly NASDAQ) arbitration where they are trapped in one or more of certain ARSs from a single broker dealer of $500,000 or more. (By agreement with their broker dealers, FINRA arbitrations are the only type of legal proceedings allowed.) Of course, we will provide our candid free evaluation to any investor in ARS , and for those in ARSs of less than $500,000, we would be pleased to provide hourly fee representation in such arbitrations.

Until the auctions folded in mid-February this year, ARSs were held out by virtually all major broker dealers ("Broker Houses") as "better than a money market" yielding higher interest income and as completely liquid "cash equivalents." Today, there is about $380 Billion in such ARSs. Many of these investors are frozen in ARSs with 20- to- 35 years remaining until their maturity dates, with their interest payments significantly reduced or eliminated and no restoration of the former artificially maintained "auction markets" in sight.

There are three common types of ARSs. The problem is particularly acute for investors in the $89 Billion of Student Loan Funds ("SLARS"). They are in the worst hole, with no open market, 25% to 35% discounts from par value in the occasional "spot vulture" purchases, zero interest, and remedy on the horizon except for legal action. We are especially interested in assessing the cases of those SLARS investors, and if positive, representing them in FINRA arbitration.

A second common type, the Closed End Fund Shares ("FSARS") (typically preferred stock) have about $140 Billion of outstanding. FSARS investors are in a slightly better position, but have no open market for sales, suffer about 15% discount in the occasional "spot vulture" purchases, and their interest is often reduced by 1% to 2%. Mansfield Tanick & Cohen is also interested in providing a free evaluation of these FSARS cases, in order to weigh the benefits of pursuing FINRA arbitration against their Broker Houses.

Investors in the $150 Billion of outstanding Municipal Bond Funds ("MBARS") are in the best position. Although there is currently no open sales market for MBARS, such investors, with few exceptions, are usually earning a higher penalty interest than before the auctions shut down and take a single digit discount from par value on the occasional "spot vulture" purchases. Due to the penalty rate, we predict most MBARS will eventually be recalled by the government entities long before their 20- to- 35 years to maturity, thereby solving the liquidity problem. While in most cases our representation is not needed, we will provide an initial telephone consult and if it seems appropriate, a free evaluation to such MBARS investors.

We generally would only offer hourly fee representation to such MBARS investors, but there may be exceptions for certain investors in one or more MBARS allowing us to consider a partial or hybrid contingency.

We focus are attention on the first two types of ARSs because that is where the worse damages are concentrated. Thus, for investors in one or more SLARS or FSARS from a single Broker House totaling $500,000 or more, we will provide a free evaluation and if positive, we will seriously consider partial or hybrid contingent fee representation in FINRA arbitration.

Regardless of type or amount, of course, we are ready and very able to provide hourly fee advocacy to our investor clients.

To learn more about the ARS disaster, and potential legal action, contact us. In a coming eWatch, we will cover the history and resulting mess from the ARS debacle in more detail.

For your free evaluation, contact:

Seymour J. Mansfield smansfield@mansfieldtanick.com 612-341-1232

Bert Black bblack@mansfieldtanick.com 612-341-1202

For ARS investors: Help may be on the way. Mansfield Tanick & Cohen may be able to solve your problems through effective advocacy and/or FINRA arbitration on your behalf.