Wachovia To Buy Back $9B In Auction Rate Securities

Law360, New York (August 15, 2008, 12:00 AM EDT) -- Wachovia Corp. has become the latest big bank to settle with securities regulators over its involvement in the ill-fated auction rate securities market, agreeing Friday to a buyback scheme worth $9 billion.

Under the global settlement, Wachovia will repurchase more than $5.7 billion from over 40,000 individual investors, small businesses and charities by the end of November. Businesses with big stakes will be able to redeem their securities by next June.

“Today's settlement is a major step towards making these investors whole,” said Missouri Secretary of...
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