Merrill Lynch next in Cuomo’s sights

New York Attorney General Andrew Cuomo will investigate Merrill's connection with the freezing of the ARS market.
AUG 15, 2008
By  Bloomberg
New York Attorney General Andrew Cuomo will investigate Merrill Lynch & Co. Inc. in connection with the February collapse of the auction rate securities market, according to published reports. Mr. Cuomo’s announcement of the investigation comes on the same day his office announced a settlement with St. Louis-based Wachovia Securities LLC regarding its sale of ARS, the interest rates on which change based on monthly auctions. In a statement, Merrill Lynch said: "We were surprised that New York sent us a letter threatening legal action on auction rate securities. We have been discussing this issue with New York and other regulators since we announced last week our plan to purchase our retail clients' ARS and we thought we were making progress. We anticipated further talks," Other investment banks that have settled ARS cases with Mr. Cuomo and other state regulators include Citigroup Inc., Morgan Stanley and JPMorgan Chase & Co., all based in New York, and UBS AG, based in Zurich, Switzerland.

Latest News

RIA moves: True North adds $353M California RIA as SageView grows North Carolina presence
RIA moves: True North adds $353M California RIA as SageView grows North Carolina presence

Plus, a $400 million Commonwealth team departs to launch an independent family-run RIA in the East Bay area.

Top Commonwealth advisor to recruiters: Stop with the cold calls already!
Top Commonwealth advisor to recruiters: Stop with the cold calls already!

“I respectfully request that all recruiters for other BDs discontinue their efforts to contact me," writes Thomas Bartholomew.

Blue Owl Capital, Voya strike private market partnership for retirement plans
Blue Owl Capital, Voya strike private market partnership for retirement plans

The collaboration will focus initially on strategies within collective investment trusts in DC plans, with plans to expand to other retirement-focused private investment solutions.

Why AI notetakers alone can't fix 'broken' advisor meetings
Why AI notetakers alone can't fix 'broken' advisor meetings

Wealth tech veteran Aaron Klein speaks out against the "misery" of client meetings, why advisors' communication skills don't always help, and AI's potential to make bad meetings "100 times better."

Morgan Stanley, Goldman, Wells Fargo to settle Archegos trades lawsuit
Morgan Stanley, Goldman, Wells Fargo to settle Archegos trades lawsuit

The proposed $120 million settlement would close the book on a legal challenge alleging the Wall Street banks failed to disclose crucial conflicts of interest to investors.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.