NEW YORK — New York Attorney General Andrew Cuomo filed a lawsuit yesterday against the brokerage unit of Charles Schwab Corp., claiming the firm misled customers about the safety of auction-rate securities.

Cuomo's office has been at the forefront of pushing brokers and underwriters of auction-rate securities to repurchase them from investors who were left with losses after the market for the investments collapsed in early 2008. The suit is aimed at forcing the retail brokerage firm to repurchase the securities at face value from investors.

FED EXTENDS LENDING PROGRAM TO MARCH 31

WASHINGTON — The Federal Reserve has extended the length of a program intended to spur lending to consumers and small businesses at lower rates, but the central bank said it had no plans to expand the types of loans being made.

The Fed said yesterday it was extending its Term Asset-Backed Securities Loan Facility through March 31 for most of the types of loans it makes. The program was scheduled to end Dec. 31.

BANK LENDING LIKELY TO REMAIN TIGHT

WASHINGTON — The Federal Reserve said yesterday most banks expect their lending to remain tight through the second half of next year, with the exception of mortgage standards, which already are loosening a bit.

The Fed's survey of loan officers found that about 20 percent of U.S. banks tightened their lending standards on prime home mortgages in the April-June quarter, down from around 50 percent in the previous quarter and a peak of about 75 percent a year ago.

FIRST-TIME BUYERS BOOST HOUSING INDEX

NEW YORK — The National Association of Home Builders said yesterday its housing market index rose in August to the highest point in more than a year, as homebuyers hurried to take advantage of a federal tax credit before it expires.

The Washington-based trade association said the index rose one point to 18, a level not seen since June 2008. The federal tax credit that covers 10 percent of a home price up to $8,000 for first-time buyers is set to expire at the end of November.