About 40 trades in a series of preferred shares issued by US Bancorp were canceled by the New York Stock Exchange after it found investors got bad prices.
Transactions in US Bancorp’s Series A non-cumulative preferred on June 16 through June 18 were nullified because they were executed at levels that weren’t reasonably related to the market value after an exchange offer, the NYSE Euronext unit said in a statement on its website.
The trades occurred at about $80 a share. The prices should have been closer to $800 after the stock was created in a conversion, NYSE said in a filing with the U.S. Securities and Exchange Commission. NYSE spokesman Eric Ryan declined to comment beyond the website update.
The canceled executions were “based on incorrect or grossly misinterpreted structural or issuance information that resulted in severe price dislocation,” according to the SEC filing. The preferred stock has been halted for more than a month and is scheduled to reopen July 20.