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Cuomo says the banks have and will continue to providr liquidityto investors. Last October, agreed to buy back as much as $4.7 billio in auction-rate securities it sold to abouf 5,500 investors, small businesses and small charities beforee the market collapsed inFebruaryg 2008. According to the Securities and Exchange the settlement also required BofAto “use its best to provide up to $5 billion in liquidity to businessew and institutional investors with accounts valued at $15 millio or more, and charities with accountd valued at $25 million or more.
The agreement resolvedd allegations that securities dealers made misrepresentations to customerw during salesof auction-rate securities about theire safety and liquidity. Auction-ratr securities have interest rates that are resetg at weekly or monthly auctions run byinvestmentt firms. The $330 billion market collapsed last year, when investorx became alarmed at the prospects of the ability of corporate borrowers covering debt service on the Many were left with securities they could not sell intothe Charlotte-based BofA (NYSE:BAC) neither admitted nor denie wrongdoing. The SEC also has finalizer a settlement with BofA overthe securities.
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