NY AG Expands Investigation Into Auction Rate Securities Scandal

Cuomo Today Announces His Office is Focusing Attention on other Industry Players Including JP Morgan Chase, Morgan Stanley and Wachovia

NEW YORK, NY (August 11, 2008) - New York Attorney General Andrew M. Cuomo today announced his office is expanding its investigation into the auction rates securities scandal. Cuomo today sent letters to JP Morgan Chase, Morgan Stanley and Wachovia announcing that his office will look into the firms’ behavior pertaining to misrepresenting auction rate securities to investors as safe, cash-equivalent products, when in fact they faced increasing liquidity risk.

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Last week Cuomo’s office secured landmark agreements with UBS and Citigroup that will return over $20 billion to investors across New York State and the nation.

“Today we’re expanding our investigation into the auction rate securities scandal to insure investors across New York State and the nation get their money back,” said Attorney General Andrew Cuomo. “Last week my office secured landmark agreements that will put $20 billion back in the pockets of investors. We believe that when you protect the investor you also increase investor confidence, which helps the entire market"

Source: New York Attorney General