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Is Andrew Cuomo Protecting Institutional Investors?

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Is Andrew Cuomo going to force Wall Street to bailout institutional investors who bought auction rate securities? So far most of the offers to buy back auction rate securities that have come from brokers have applied to retail investors, charities and municipalities. The idea was that these investors were probably the focus of regulator protection and more sophisticated investors knew or should have known the risks in the market.
CNBC's Charlie Gasparino is reporting that Cuomo's dissatisfaction with the settlement offers from Merrill Lynch and Morgan Stanley stems, in part, from a concern for institutional investors. Pension funds and others own large amounts of the securities, and Cuomo may be pushing Wall Street firms to offer relief to these customers as well. This could seriously increase the cost of bailing out this market to the firms involved.