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Cuomo says the bankws have and will continue to provide liquidityto investors. Last agreed to buy back as muchas $4.7 billiojn in auction-rate securities it sold to aboutf 5,500 investors, small businesses and small charities before the marketr collapsed in February 2008. According to the Securities andExchang Commission, the settlement also required BofA to “used its best efforts” to provide up to $5 billion in liquiditgy to businesses and institutional investors with accountsd valued at $15 million or more, and charities with accounts valuede at $25 million or The agreement resolved allegations that securitiezs dealers made misrepresentations to customers during sales of auction-rate securities about their safety and liquidity.
Auction-rate securities have interesrt rates that are reset at weekly or monthly auctionsw run byinvestment firms. The $330 billion markeg collapsed last year, when investors becamde alarmed at the prospects of the abilit of corporate borrowers covering debt servicew onthe securities. Many were left with securitiesz they could not sell intothe Charlotte-based BofA (NYSE:BAC) neither admitted nor denied The SEC also has finalized a settlemenf with BofA over the securities.
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