New York Attorney General Andrew Cuomo is reportedly looking into whether Fidelity Investments might have been motivated to sell Goldman Sachs' underwritten auction-rate securities due to a pre-existing business relationship.
Cuomos office began looking into the two firms relationship after learning that Goldman was the underwriter for most of the ARS that Fidelity sold.
However, Fidelity spokeswoman Anne Crowley told The Wall Street Journal the firm had no incentive to sell or promote auction-rate securities and that a mere 600 customers had exposure to them.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.