Wells Fargo Agrees To Buy Back $1.3B In ARS

Law360, New York (November 18, 2009, 2:53 PM EST) -- Wells Fargo & Co. has reached agreements to buy back about $1.3 billion in auction rate securities and pay a $1.9 million penalty to the state regulators that investigated allegations the bank misled customers about the riskiness of the investment.

The settlement requires unit Wells Fargo Investments to extend offers to repurchase auction rate securities from all customers nationwide by approximately Feb. 18, the North American Securities Administrators Association said Wednesday. The bank also reached an agreement with the California Attorney General's Office.

The "settlement demonstrates...
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