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Monday, August 11, 2008

Cuomo's Office Sent Letters to Morgan Stanley, JP Morgan, Wachovia

FOXBusiness

New York Attorney General Andrew Cuomo’s investigation into the auction rate securities market looks to be growing.

According to The Wall Street Journal, Cuomo’s office sent letters demanding that Morgan Stanley (MS), JP Morgan Chase (JPM) and Wachovia Corp (WB) begin negotiations as his office looks into the sale and marketing of auction-rate securities.

Just last week, settlements were reached between Cuomo’s office and Citigroup Inc, UBS AG, and Merrill Lynch & Co. demanding that the banks buy back the auction-rate securities from the individuals that purchased them.

The letters said it would be unfair to the firms that have already reached settlements, as well as to the consumers with accounts at those other firms, if the investigation were to stop or slow down, and any agreements would need to be similar to the settlements reached, the Journal reported.

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