TD Ameritrade To Buy Back $456M In ARS

Law360, New York (July 20, 2009, 7:58 PM EDT) -- Online brokerage TD Ameritrade Inc. has reached a settlement with the U.S. Securities and Exchange Commission and a group of state securities regulators over its sale of failed auction rate securities, agreeing to return $456 million to clients whose funds were frozen when the risky bond market collapsed.

The SEC and North American Securities Administrators Association announced the settlement in separate statements Monday, saying the Omaha, Neb., firm would immediately begin offering to repurchase illiquid ARS from its retail customers.

The settlement resolves SEC allegations that...
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