omagyvoham.wordpress.com
Cuomo said the banks have and will continu e to provide liquidityto investors. Last October, agreed to buy back as much as $4.7 billiob in auction-rate securities it sold to about 5,500 investors, small businesses and smal l charities before the market collapsed inFebruar 2008. According to the Securities andExchange Commission, the settlementt also required BofA to “use its best efforts” to providew up to $5 billion in liquidity to businesses and institutiona investors with accounts valued at $15 million or and charities with accounts valued at $25 milliobn or more.
The agreement resolved allegations that securities dealersw made misrepresentations to customers during salesof auction-rate securities about their safety and liquidity. Auction-rate securitie have interest rates that are reset at weeklu or monthly auctions run byinvestmengt firms. The $330 billio market collapsed last year, when investoras became alarmed at the prospects of the abilityt of corporate borrowers covering debt service onthe securities. Many were left with securities they could not sell intothe market. N.C.-based BofA (NYSE: BAC) neither admitted nor denie d wrongdoing.
The SEC also has finalize d a settlement with BofA overthe
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment