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Auction Rate Securities Victim Watch: The Culinary Institute of America

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When the Culinary Institute of America needed to raise money to pay for a new building they turned to a Goldman Sachs banker for advice. He told them to issue auction rate securities. That piece of advice cost them nearly half a million dollars when the market seized up and the interest rate of the securities shot up to 14 percent, Bloomberg reports.

Auction-Rate Collapse Costs Taxpayers $1.65 Billion