New York sues Schwab for misleading investors

In a statement today NY Attorney General Cuomo said: "Charles Schwab owed its customers a duty to properly understand and make accurate representations concerning auction-rate securities. Today we commenced a lawsuit to remedy Schwab's repeated breach of that duty."

Over the past year, Cuomo's AG office has brokered more than a dozen settlements with other firms that wrote or sold the securities. Counting those settlements and others elsewhere around the country, more than 20 firms have agreed to repurchase $61 billion in the investments, according to the attorney general's office.