Merrill Lynch in ARS settlement with Virginia
The Virginia State Corporation Commission says Merrill Lynch is paying nearly $1.37 million to settle allegations that investors were misled about the safety of the auction-rate securities market.
The Virginia State Corporation Commission says Merrill Lynch is paying nearly $1.37 million to settle allegations that investors were misled about the safety of the auction-rate securities market.
The SCC finalized Virginia’s participation in a global settlement involving the firm.
Merrill Lynch was required to confirm that it has repurchased auction-rate securities from its clients as part of the settlement.
Officials say that auction-rate securities were marketed and sold to investors as safe, liquid, and cash-like investments. But they say the securities were actually long-term investments subject to a complex auction process that failed in early 2008.
The settlement stems from a multistate task force of state regulators.
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