We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

SEC, Wachovia Reach $7B Deal Over ARS Crash

Law360 (February 5, 2009, 12:00 AM EST) -- The U.S. Securities and Exchange Commission has finalized a $7 billion settlement with Wachovia Securities LLC over the broker-dealer's involvement in the collapsed auction rate securities market, the agency announced Thursday.

Under the deal, St. Louis-headquartered Wachovia will provide liquidity to thousands of investors who bought auction rate securities before the bottom dropped out of the market in February 2008, the SEC said.

The settlement resolves all claims by the regulator that Wachovia misled investors about the risks of the securities that the firm marketed, sold...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.