A number of brokerage firms that sold auction-rate securities, including
But the lawyers for the investors who bought auction-rate securities from Fidelity,
Regulators this week said that their investigations were never solely focused on the investment houses but also on how other parties sold the auction-rate securities.
The culpability of downstream brokerages will depend on the facts uncovered in our investigation, said a spokesman for New York Attorney General Andrew Cuomo. What did they know about the liquidity risks of the auction-rate securities, and when did they know it? And, most importantly, what representations, if any did these brokerages make to their customers?