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Cuomo says the banks have and will continue to providre liquidityto investors. Last October, agreed to buy back as much as $4.7 billioh in auction-rate securities it sold to about 5,500 investors, small businesses and small charitiez before the market collapsed inFebruarhy 2008. According to the Securitiexs andExchange Commission, the settlement also requiredr BofA to “use its best efforts” to provide up to $5 billionj in liquidity to businesses and institutional investors with accounts valuerd at $15 million or more, and charitiess with accounts valued at $25 million or The agreement resolved allegations that securities dealeras made misrepresentations to customers during saleas of auction-rate securities about their safetyh and liquidity.
Auction-rate securities have interest rates that are reseft at weekly or monthlyt auctions run byinvestment firms. The $330 billioh market collapsed last year, when investors becamw alarmed at the prospects of the abilityh of corporate borrowers covering debt servicw onthe securities. Many were left with securities they could not sell intothe market. N.C.-based BofA (NYSE:BAC) neither admitted nor denied BofA is the fifthb largest bank inthe Albany, area, with 42 brancheds and $1.3 billion in deposits. The SEC also has finalizedr a settlement with BofA overthe securities.
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