Auctions of municipal auction-rate securities totaling as much as $10 billion in par value have failed since Monday. A market source estimated that broker-dealers buying up excess auction-rate securities accounted for 10% to 20% of the market.

Over the past three weeks, Wall Street's biggest banks have seen their auctions fail, including, Piper Jaffrey & Co, Stifel Nicolaus & Co., Goldman Sachs, JPMorgan, Citi, Morgan Stanley, Bank of America, Merrill Lynch & Co., Wachovia Bank NA, and UBS. Just yesterday six of the banks saw failed auctions.

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