Galvin subpoenas three large investment houses

[0:00] ..." Which to determine the sales practices of three large firms UPS Merrill Lynch and Bank of America investment regarding auction rate securities sort of an exotic type of investment that. We believe was marketed to"...

[0:41] ..." area which is really sort of Dutch auction relating to. Closed in mutual funds with the underline his or -- rather unique area as had a history of of great liquidity poetry which of money quite"...

[1:15] ..." Is this part of that this is but part of the ongoing investigation into revenues in the auction rate markets."...

[2:38] ..." are down payment and haven't put in this topic for slightly higher interest rates. And now finds himself unable to access to money and and especially small businesses on and so situation. Our concern is of"...

[0:00]" Which to determine the sales practices of three large firms UPS Merrill Lynch and Bank of America investment regarding auction rate securities sort of an exotic type of investment that. We believe was marketed to individual investors in Massachusetts's like a money market or -- like -- suggesting that it would be accessible. And liquid. That means available and these individuals -- small individual investors as well as the small businesses. But suddenly problems -- unable to access that money despite the representations that they claim form mate. But we're very interest in the sales practices is this rather unique area which is really sort of Dutch auction relating to. Closed in mutual funds with the underline his or -- rather unique area as had a history of of great liquidity poetry which of money quite easily it this is not a case where there. The underlying obligation the world plus the -- of value. But it's causing great -- to these investors. And opulent uses these investment firms have misrepresented what they would selling them purchasers -- hours our concerns -- mutual investors."

[1:15]" Is this part of that this is but part of the ongoing investigation into revenues in the auction rate markets."

[1:21]" That's right we we are this whole area as it says it has experience the complete borrow paralysis since. These local credit crunch that occurred. And many individuals and entities and -- Institutions of so great difficulty using these instruments these potential investments. As they have in the past it's quick places to park money get a slightly higher rate and still have access to their money. What we're concerned about -- is that some of the individuals who now upon themselves unable to access to -- money. Were not properly informed of the risk involvement in fact it would not it would get their money it would they did not really discovered in nature of these its missile problem occur. And we want to see what the exact. Marketing techniques of spectacle in -- and these are not the only firms to. Have -- to our attention but they're the ones that we have the most in inquiries about from our mast chooses investors this is a national problem it's causing a lot of topic -- missed power these important outnumber amenities. But our particular concern is individual messages and those differences we have folks who. -- have a -- which crosses their assets and now frozen we have a -- was sitting there that there are down payment and haven't put in this topic for slightly higher interest rates. And now finds himself unable to access to money and and especially small businesses on and so situation. Our concern is of these individuals were not. Properly informed as to what the -- squads and if that was the case it would give some relief"