The Securities and Exchange Commission and New York Attorney General Andrew Cuomo yesterday announced they had finalized settlements with several investment banks over allegations the firms had misrepresented the risks of auction-rate securities.

Last year, the auction-rate securities market seized up, leaving investors holding billions of dollars worth of illiquid securities and issuers paying penalty interest rates as high as 20%.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.