WASHINGTON — At least six state securities regulators are considering enforcement action against banks and broker-dealers that have failed to commit their “best efforts” to restore liquidity to institutional investors in auction-rate securities, according to David Massey, North Carolina’s deputy securities ­administrator.

Massey made his remarks as the state regulators gathered here for the North American Securities Administrators Association’s spring policy conference and warned the financial regulatory reform package being crafted by lawmakers falls short of needed reform.

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.