New York Attorney General Andrew Cuomo's suit against Charles Schwab is certainly not all that surprising given the other cases of ARS related improprieties. Several firms have been accused of misleading their clients about auction related securities, suggesting they were as safe as holding cash, effectively.

Many have settled, often agreeing to buy back securities, but the charges against Schwab are somewhat surprising given that the firm held itself upright as one that would put investors first. It enjoys a squeaky clean image built on the reputation of its founder. Maybe Schwab should have settled when it had the chance.  

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