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Cuomo Not Done By A Long Shot

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You would've thought he would've been sufficiently satisfied by getting ARS addicts UBS and Merrill Lynch to submit but apparently Andrew Cuomo is not finished yet. The New York state attorney general said today that he is ramping up his auction rate securities investigation to three more banks, having sent letters to JPMorgan, Wachovia and Morgan Stanley. The love notes advise that the firms "enter into immediate talks about resolving the investigation," and suggest (by saying outright) that their settlements resemble those reached with UBS, Citigroup and Merrill Lynch last week. JPMorgan declined to comment, Wachovia hilariously told the Journal that it is "look[ing] forward to the discussions," and Morgan Stanley said it "has been and will continue to cooperate with regulators," having wisely chosen to roll over and take it last week in Massachusetts.
Cuomo noted that "It would be unfair to consumers with accounts at other firms, as well as to the firms that settled if our investigation were to slow down or stop," which is of course true, though he declined to mention that the need for haste is slightly self-serving. The sooner this ARS thing wraps up, the sooner he can get back to working on a little Pet Project of his known as this.

Cuomo Seeking Talks With More Big Banks On Auction-Rate Securities