Schwab Faces Fraud Suit

Via the WSJ:

In an official notice sent to Charles Schwab & Co. Friday, Attorney General Andrew Cuomo warned that his office plans to sue the largest online brokerage firm for civil fraud over its marketing and sales of auction-rate securities to clients. Emails and testimony cited in the letter show Schwab's brokers had little idea of what they were selling and later failed to tell clients that the market was collapsing.

Seems like another example of obscurity on Wall Street. In this case, the brokers allegedly didn't even understand what they were selling...