Monday, April 18, 2011

N.Y attorney general ends BofA probe - Memphis Business Journal:

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Cuomo says the bankas have and will continue to provide liquiditytto investors. Last October, agreed to buy back as much as $4.7 billion in auction-rate securities it sold to about 5,500 investors, small businessex and small charities before the market collapse inFebruary 2008. Accordinhg to the Securities andExchange Commission, the settlement also requirec BofA to “use its best to provide up to $5 billion in liquidity to businessees and institutional investors with accounts valued at $15 million or and charities with accounts valued at $25 million or The agreement resolved allegations that securitie dealers made misrepresentations to customers during saleds of auction-rate securities about their safeth and liquidity.
Auction-rate securities have interest rates that are resett at weekly or monthly auctions run byinvestment firms. The $330 billion markeyt collapsed last year, when investors became alarmed at the prospects of the abilitg of corporate borrowers coverinb debt service onthe securities. Many were left with securities they couldc not sell intothe Charlotte-based BofA (NYSE:BAC) neither admitted nor denied wrongdoing.
The SEC also has finalized a settlement with BofA overthe

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