New York may sue Charles Schwab over Auction Rate Securities

Discussion in 'Wall St. News' started by ASusilovic, Jul 20, 2009.

  1. LOS ANGELES (MarketWatch) -- New York Attorney General Andrew Cuomo plans to sue Charles Schwab & Co. for civil fraud over its marketing and sales of auction-rate securities, The Wall Street Journal reported Monday, citing a letter from Cuomo's office. Many other Wall Street firms have settled with clients over investments into the ill-fated auction-rate securities market, which collapsed in early 2008. The report cites Cuomo as saying in the letter, issued Friday, that his office would be open to a settlement with Schwab, but it must agree to buy back the securities from investors still stuck with them.