Adesa Impact
Adesa Impact auction news. IAA has locations nationwide and runs wholesale used automotive auctions.
New York to increase scrutiny of auction rate security collapse
The collapse of the auction rate securities market is drawing more attention from New York Attorney General Andrew Cuomo. UBS and Citigroup have already agreed to buy back billions of dollars of the now-worthless securities that they had described as being as liquid as cash. They've also coughed up $250 million in fines.
Now under the microscope are JPMorgan Chase, Morgan Stanley, and Wachovia. Wachovia is also "look[ing] forward to the discussions" with regulators in Missouri, where Wachovia Securities' headquarters are located.
Investors with Merrill Lynch may not be so lucky, however.
Merrill investors who cashed out their auction rate securities at a loss may end up having to sue to recover losses. Those who kept the auction rate securities may recover their investments, depending on what happens between Merrill Lynch and regulators in New York and Massachusetts.
In Massachusetts, Secretary of State William Galvin filed a suit against Merrill in July alleging fraud. Only four days before Merrill dropped out of the auction rate securities market, analysts were recommending that clients buy them. At the same time, analysts were e-mailing back and forth about the imminent crash of the auction rate market.
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