Royal Bank Of Canada To Buy Back $800M In ARS

Law360, New York (October 8, 2008, 12:00 AM EDT) -- More than 2,000 investors will be able to sell their ill-fated auction rate securities back to the Royal Bank of Canada under an $800 million settlement with the U.S. Securities and Exchange Commission.

The settlement, announced Wednesday with RBC Capital Markets Corp., requires RBC to buy back the securities at prices equivalent to the market value before February, 2008, or otherwise make investors whole, by Dec. 15.

The settlement is preliminary and has not received full approval from the SEC.

Affected investors include individuals, small businesses,...
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