Cuomo Seeks $13 Billion From Three Banks

Andrew Cuomo’s $20 billion settlement with UBS was just the beginning. The attorney general is now looking to settle with three other firms that his office says defrauded investors of about $13 billion through the mis-marketing of auction rate securities.

In letters to JPMorgan Chase, Morgan Stanley and Wachovia, the chief of the Cuomo's Investor Protection Bureau wrote, “It would be unfair to consumers with accounts at other firms, and well as to the firms that settled, if our investigation were to slow down or stop. Accordingly, our investigation’s focus is shifting to the next group of market participants.”

Investors lost more than $3 billion with JPMorgan Chase, more $3 billion with Morgan Stanley, and more than $7 billion with Wachovia, according to a spokesman for Cuomo. If the firms settle, money would be paid to the state, according to a spokesman.