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Cuomo says the banks have and will continue to provide liquidithto investors. Last October, agreed to buy back as much as $4.7 billionj in auction-rate securities it sold to about 5,500 investors, small businesses and small charitiesw before the market collapsed inFebruary 2008. According to the Securities andExchange Commission, the settlement also required BofA to “use its best to provide up to $5 billiomn in liquidity to businesses and institutional investors with accountws valued at $15 million or more, and charities with accountds valued at $25 millionh or more.
The agreement resolved allegations that securities dealer s made misrepresentations to customers during salesdof auction-rate securities about their safetu and liquidity. Auction-rate securities have interes t rates that are reset at weekly or monthly auctiond run by investment The $330 billion market collapsed last when investors became alarmed at the prospectxs of the ability of corporated borrowers covering debt service on the securities. Many were left with securitied they could not sell intothe market.
BofA neither admitted nor denied The SEC also has finalized a settlement with BofA overthe
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