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Cuomo names three banks in debt probe
21.08.08
New York attorney general Andrew Cuomo is stepping up his probe into the sale of auction-rate debt, and is now focusing on Bank of America, Goldman Sachs and Deutsche Bank.
Cuomo's office said the banks were next on its list in an industrywide probe in which five major firms have agreed to buy back billions of the illiquid debt.
It also said it had uncovered “disturbing facts” as part of its investigation into the sales of auction-rate debt by brokerages. Securities firms and banks have been accused of pushing the securities to their customers even as the market for them fell apart.
