Peace Talks: New York Attorney General Cuomo, Merrill Lynch CEO Thain Talk Settlement

Posted: Updated:

NEW YORK — New York Attorney General Andrew Cuomo has been in all-day meetings with Merrill Lynch & Co. Chief Executive John Thain regarding a last minute settlement over auction-rate securities, according to a person familiar with the negotiations.

The meetings are being held at Cuomo's office in New York City in order to avert a lawsuit the attorney general has threatened against the brokerage firm, said the person, who spoke on condition of anonymity because he was not authorized to comment publicly on the talks.

Cuomo, who along with other regulators has reached $42 billion worth of settlements with five major Wall Street banks, said earlier that talks with the world's largest brokerage were at an impasse. He threatened to sue Merrill Lynch if an agreement was not reached by the end of the day.