SEC Isn't Backing Cuomo's Settlement

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It's tough to be the Securities & Exchange Commission these days. The Treasury Department and the Federal Reserve have been encroaching on the SEC's turf, leaving many to question what role the SEC will have in the future. And lately New York State Attorney General Andrew Cuomo has been taking the lead in the "investor protection" business by negotiating settlements with Wall Street firms who sold customers auction rate securities.
Now it seems the SEC is fighting back. Andrew Cuomo is just now making an announcement of a settlement with Morgan Stanley and JP Morgan Chase, with the two firms agreeing to pay fines and buy the frozen auction rate securities back from customers. Along side him is a representative from the National Association of State Securities Dealers. Absent was a representative from the SEC.
Charlie Gasparinio just reported on CNBC that the SEC is not participating in this settlement, and its investigation is ongoing. It seems that the SEC balked at being lead into this settlement by Cuomo.
Cuomo emphasized that he believes his settlement is a "service to the entire market." He never mentioned the SEC in his press conference.

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