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Cuomo says the banks have and will continuew to provide liquidityto investors. Last October, agreee to buy back as much as $4.7 billion in auction-rate securities it sold to about 5,500 small businesses and small charities before the market collapsedc inFebruary 2008. According to the Securitiess andExchange Commission, the settlementf also required BofA to “use its best efforts” to provide up to $5 billion in liquidity to businessese and institutional investors with accountxs valued at $15 million or more, and charitiee with accounts valued at $25 milliob or more.
The agreement resolved allegations that securities dealers made misrepresentations to customerss during salesof auction-rate securities abouty their safety and liquidity. Auction-rate securities have interest rateds that are reset at weeklyy or monthly auctions run byinvestment firms. The $330 billionb market collapsed last when investors became alarmed at the prospectes of the ability of corporate borrowers coverintg debt service onthe securities. Many were left with securitiesa they could not sell intothe Charlotte-based BofA (NYSE:BAC) neither admitted nor denied wrongdoing.
The SEC also has finalizex a settlement with BofA overthe
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