N.Y attorney general ends BofA probe - South Florida Business Journal:

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Cuomo said the banks have and will continue to provide liquidity to investors. In October, agreed to buy back as much as $4.7 billionm in auction-rate securities it sold to abour 5,500 investors, small businesses and small charities beforer the market collapsed inFebruary 2008. According to the , the settlementf also required BofAto “user its best efforts” to providwe up to $5 billion in liquidity to businesses and institutional investors with accounts valued at $15 millionb or more, and charities with accounts valueds at $25 million or more.
The agreement resolved allegations that securitiesz dealers made misrepresentations about the safety and liquidityof auction-rate securitied to customers during sales. Auction-ratd securities have interest rates that are reset at weekly or monthly auctions run by investment The $330 billion market collapsed last year, when investord became alarmed at the prospects of the abilit y of corporate borrowers covering debt service on the Many were left with securities they could not sell into the market. Charlotte, N.C.-base d BofA (NYSE: BAC) neither admittedc nor denied wrongdoing. The SEC also has finalizeed a settlement with BofA overthe securities.