Page Perry

Both The Wall Street Journal and The New York Times have reported that New York Attorney General Andrew Cuomo’s office has reached an agreement with Fidelity Investments to resolve problems over Fidelity’s marketing of auction-rate securities. According to sources familiar with the negotiations, Fidelity will apparently repurchase approximately $300 million of auction-rate securities from its customers. It is anticipated that the settlement will be similar to other settlements previously entered into and will be limited to small investors (defined as retail customers, charitable organizations and small businesses holding $10 million or less in investments at the firm).