Banks Fined Nearly $2M Over Alleged ARS Misdeeds

Law360, New York (April 22, 2010, 5:57 PM EDT) -- Subsidiaries of HSBC Holdings PLC and U.S. Bancorp have agreed to pay a combined $1.78 million in fines to settle charges stemming from the auction rate securities fiasco, the Financial Industry Regulatory Authority announced Thursday.

HSBC Securities (USA) Inc. was fined $1.5 million. It has already repurchased more than $562 million of ARS held by its customers, but as part of the settlement it will repurchase additional ARS sold to certain customers who transferred accounts before the previous buy-backs and to customers who chose not to...
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