Posted on Thursday, 29th July 2010 by Christopher Allen
A unit of Wells Fargo & Co. will buy back $34.6 million worth of auction rate securities from Colorado investors as a result of a settlement with the Colorado Division of Securities, state Securities Commissioner Fred Joseph said on Thursday.
The unit is Wells Fargo Investments LLC.
At issue are securities that investors found themselves unable to sell after the auction-rate securities market froze in 2008. Investors complained that sales representatives failed to disclose the risk involved in buying the securities.
This is the 11th finalized settlement in Colorado related to auction-rate securities, Joseph said.
Over the past year or so, the Colorado Division of Securities has reached settlements with Deutsche Bank Securities, Credit Suisse Securities, JPMorgan Chase, RBC Capital Markets, Citigroup Global Markets, Merrill Lynch, Wachovia and Bank of America Securities, TD Ameritrade, UBS Securities LLC and UBS Financial Services Inc.
Regulators in various states including Colorado are continuing their investigations into possible misconduct by other firms, and have reached agreements to settle with some of these firms, officials said.
Similar Posts:
- Big banks warn of fines in mortgage investigations
- Wells Fargo wealth earnings up
- Overpriced housing notes cost firm $200 million
- Merrill Lynch finds rich are getting richer
- Apple rolls out new macs, shares set record
Tags: Auction Rate, Auction Rate Securities, Rate Securities, Securities
Posted in The Best Business Tips | Comments (0)