Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

Monday, August 11, 2008

New York Expands ARS Investigation

New York Attorney General Andrew M. Cuomo today announced his office is expanding its investigation into the auction rate securities scandal. Cuomo today sent letters to JP Morgan Chase, Morgan Stanley and Wachovia announcing that his office will look into the firms’ behavior pertaining to misrepresenting auction rate securities to investors as safe, cash-equivalent products, when in fact they faced increasing liquidity risk.

Last week the SEC, the New York Attorney General and NASAA entered into agreements with UBS and Citigroup that will return over $20 billion to investors.

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