Aug. 15 (Bloomberg) -- New York State Attorney General Andrew Cuomo stepped up pressure on Merrill Lynch & Co. and Goldman Sachs Group Inc. to settle claims they misled investors in auction-rate securitiesOK, do you read this? Merrill offered to buy back for $10 billion, but that is not adequate!
Merrill faces an ``imminent'' lawsuit from New York because the firm's offer last week to buy back $10 billion of the debt wasn't adequate, Cuomo said at a news conference today. New York has subpoenaed about 25 firms involved in sales of auction-rate securities, including five that have already settled. Merrill has five days to explain why the attorney shouldn't act, according to a letter from Cuomo's office.
I think we are not seeing the end of the liquidity nightmare banks are having and the Alt-A crisis is just a couple of months away.
In the meantime, the markets keep on rising. How long until reality struck them?