BoA Settles Some ARS Claims For $4.7B

Law360 (October 8, 2008, 12:00 AM EDT) -- In an arrangement that “closely mirrors” its settlement with Massachusetts, Bank of America Corp. will buy back up to $4.7 billion in auction rate securities as part of a deal with federal and state regulators who allege the company misled customers into making risky investments.

On Wednesday, Bank of America and the U.S. Securities and Exchange Commission announced the preliminary settlement, which applies only to “retail customers,” including an estimated 5,500 small businesses, individual investors and small charities.

Bank of America will also pay a $50...
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