Calif. Regulator, BofA Units Settle ARS Claims

Law360, New York (June 8, 2009, 12:00 AM EDT) -- Bank of America Corp.'s investment banking and securities broker-dealer arms and the California Department of Corporations have reached a settlement in a multistate investigation alleging the bank units misrepresented auction rate securities that involves a $50 million penalty and will facilitate the return of more than $3 billion to California investors, CDOC announced Monday.

“This multibillion-dollar agreement represents significant relief for many individual and small business investors who lost access to funds in the collapse of the auction rate securities market,” CDOC Deputy Commissioner Alan Weinger...
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