New York Attorney General Andrew Cuomo said he's going after other brokers now that he's settled with UBS and Citigroup over sales of auction rate securities. "This is an industrywide problem," Cuomo said. "This is not about one or two institutions." Auction rate securities take their name from the fact that their interest rates reset at frequent auctions. They were sold as a slightly higher-yielding alternative to money-market funds, until the market dried up last February. A key issue is whether they were misrepresented to investors who were stuck with billions of dollars of securities they couldn't sell. UBS and Citigroup agreed last week to buy back a combined $25.6-billion. Customers of St. Petersburg-based Raymond James hold $1.3-billion worth of the securities. The company has acknowledged both Cuomo and the Securities and Exchange Commission are investigating.
Cuomo puts other brokers in his sights
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