E-Trade To Buy Back $20M In Calif. ARS Deal

Law360, New York (January 13, 2012, 10:30 PM EST) -- E-Trade Securities LLC agreed Friday to return up to $20 million to investors and to pay $1.1 million in administrative penalties to California to settle a multistate investigation alleging the company, along with multiple major banks, misrepresented auction rate securities as safe, cash-equivalent products.

The California Department of Corporations — which worked with the North American Securities Administrators Association and its multistate Auction Rate Securities Task Force to investigate E-Trade — announced that the online broker would offer to repurchase at face value all ARSs sold...
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