Bank Of America Settles Mass. ARS Probe

Law360, New York (September 10, 2008, 12:00 AM EDT) -- 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...
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