Bank Of America Settles Mass. ARS Probe

By Brendan Pierson

Law360, New York (September 10, 2008, 12:00 AM ET) -- Bank of America Corp. has agreed to buy back about $4.5 billion in illiquid auction rate securities from the bank's customers nationwide as part of a settlement with the commonwealth of Massachusetts.

Massachusetts Secretary of the Commonwealth William F. Galvin and Bank of America announced the settlement on Wednesday. The deal resolves the Massachusetts Securities Division’s probe into Bank of America's marketing practices connected with market-rate securities.

Bank of America stopped supporting its ARS in February, effectively freezing investors' assets. Massachusetts' investigation found that the company...
To view the full article, take a free trial now.

Already a subscriber? Click here to login

You must correct or enter the following before you can submit this form:

All fields required

  5. Required

Only Law360 gives you:

Non-stop coverage of high-stakes litigation across 30 practices

Real-time tracking and reports on 10,000+ companies, firms and industries

Over 80,000 attorney profiles with neutral data collected from active lawsuits

Research tools to find cases, court documents, attorneys and companies

Customized feeds and alerts that can easily be shared with colleagues

In-depth expert analysis from high-profile attorneys at top firms

Access to our vault with over 75,000 original articles