BIRMINGHAM, Ala. (CN) – An investor claims he lost $2 million by relying on AmSouth Bank’s advice that the Jefferson County sewer bonds were a good deal. William Featheringill sued Regions Bank, AmSouth’s successor, saying he was never told that he was actually investing in unregulated derivatives.
William Featheringill claims in Jefferson County Court that Regions Bank’s predecessor, AmSouth Bank, told him the bonds were exactly what he wanted – safe, liquid and tax-free – and assured him that he could get his money every 35 days if he wanted.
Featheringill says he was not given any “risk factor disclosures,” and that the bonds were not “traditional fixed-rate municipal bonds” but were “unregulated derivatives” that had “no place in the traditionally safe municipal bond market.”
Featheringill says he never would have invested in the bonds had he known the facts.
The sewer bond deals have left Jefferson County on the verge of bankruptcy, with a $3.2 billion debt.
Featheringill seeks treble damages from Regions Bank.
He is represented by J. Michael Rediker of Birmingham.