NEW YORK (AP) -- Fidelity Investments is close to settling an investigation led by New York Attorney General Andrew Cuomo into the company's sales of auction-rate securities, according to a person close to the talks.
The mutual fund company will agree to buy back $300 million worth of the securities from its customers, said the person, who was not authorized to speak publicly ahead of the official announcement. The announcement is expected to be made this afternoon.
Cuomo is leading an investigation into how major Wall Street investment banks and smaller financial companies pitched auction-rate securities to customers. The securities were marketed as being as safe as cash until the market froze up amid the credit crisis, causing investors to lose money.
(Copyright 2008 by The Associated Press. All Rights Reserved.)