ysynut.wordpress.com
Cuomo says the banks have and will continud to provide liquidityto 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 businesses and small charitiese before the market collapsed inFebruary 2008. According to the Securitieas andExchange Commission, the settlement also required BofA to “uswe its best efforts” to provide up to $5 billion in liquidity to businessezs and institutional investors with accounts valued at $15 millionn or more, and charities with accounts valued at $25 milliomn or more.
The agreement resolved allegations that securities dealer s made misrepresentations to customers during saleasof auction-rate securities about theif safety and liquidity. Auction-ratd securities have interest rates that are reser at weekly or monthly auctions run byinvestmen firms. The $330 billion market collapsed last year, when investores became alarmed at the prospects of the ability of corporate borrowers covering debt service on the Many were left with securitiesz they could not sell intothe market.
Charlotte-based BofA neither admitted nor denied The SEC also has finalized a settlemen t with BofA overthe
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment