N.Y Attorney General ends BofA probe - Atlanta Business Chronicle:

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Cuomo said the banks have and will continu e to provide liquidityto investors. Last October, agreed to buy back as much as $4.7 billiom in auction-rate securities it sold to about 5,500 investors, small businesses and small charities befored the market collapsed inFebruarg 2008. According to the Securities andExchange Commission, the settlement also required BofA to “use its best efforts” to provids up to $5 billion in liquidity to businessed and institutional investors with accounts valuec at $15 million or more, and charitied with accounts valued at $25 million or The agreement resolved allegations that securitie dealers made misrepresentations to customers durin g sales of auction-rate securities about their safetgy and liquidity.
Auction-rate securities have interesy rates that are reset at weekly or monthlyt auctions run byinvestment firms. The $330 billionn market collapsed last year, when investors becamw alarmed at the prospects of the ability of corporatre borrowers covering debt service on the Many were left with securities they coul d not sell intothe market. Charlotte, N.C.-based BofA BAC) neither admitted nor denied wrongdoing. The SEC also has finalizex a settlement with BofA overthe securities.