New York Sate Attorney General Andrew Cuomo recently subpoenaed eight Bank of America Corp. executives as part of the state's investigation into the sale and marketing of auction rate securities. The subpoenas were issued roughly a month after Attorney General Cuomo's office indicated that it would step-up its probe of auction rate securities marketed, sold and/or issued by Bank of America (along with numerous other financial institutions) and a few weeks after UBS agreed to settle a lawsuit filed by the New York Attorney General's office concerning the same.

In recent months, Morgan Stanley & Company, Merrill Lynch and UBS have entered into settlements with various state regulators, including New York, related to investigations about the sale and promotion of auction rate securities.