Skip to main content


Representing Individual, High Net Worth & Institutional Investors

Office in Indiana


Home > Blog > NY Attorney General Investigates Auction Rate Securities

NY Attorney General Investigates Auction Rate Securities

New York Attorney General Andrew Cuomo has launched an investigation into auction rate securities.  Just last week, the Attorney General’s office issued subpoenas to 18 Wall Street institutions.  It has been reported that more subpoenas are expected. 

The investigation is looking into the way these securities were marketed and sold to both municipalities for financing and to individuals as investments.  As has been reported by a number of media outlets, the auction rate securities markets have been largely frozen since February.  The lack of liquidity in a product sold as a cash alternative has raised red flags with regulators.  

In addition to the NY Attorney General, a task force of other state securities regulators has been created to investigate the actions of Wall Street firms relative to the auction rate market.    

Comments are closed.

« Back to Blog

Top of Page