Three investment banks receive summons

Three investment banks receive summons

UBS, Merrill Lynch & Company and the Bank of America Corporation received subpoenas to clear the case of auction-rate securities.

Massachusetts authorities cast doubt on the authenticity of information over the risks of auction-rate securities provided for bank investors.

Within the last couple of weeks there were a lot of calls and complaints over the “faked” deals, when people found out that they had bought auction market securities that are now frozen. In addition they could not get their money back.

Meanwhile numerous closed-end funds are trying to get their investors out of the mess.