Andrew Cuomo Has ‘Commenced a Lawsuit’ Against Schwab

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New York attorney general Andrew Cuomo has filed suit against Charles Schwab's brokerage business for misrepresenting the risks of the auction-rate securities it sold clients, and also to send a message, gangsta-style: "Charles Schwab owed its customers a duty to properly understand and make accurate representations concerning auction rate securities," Cuomo said in a characteristically wordy statement. "Today we commenced a lawsuit to remedy Schwab's repeated breach of that duty. This filing should send a signal that anyone in the industry who misrepresented the risks of investing in auction rate securities will be held accountable." [WSJ]