BofA to buy back $4.5 billion in ARS

Two divisions of Bank of America Corp. have agreed to buy back $4.5 billion in auction rate securities from individuals and small businesses across the country.
SEP 10, 2008
Two divisions of Bank of America Corp. have agreed to buy back $4.5 billion in auction rate securities from individuals and small businesses across the country, according to an agreement announced today by Massachusetts Secretary of the Commonwealth William F. Galvin. An investigation found that the Charlotte, N.C.-based bank was aware of the risk of collapse in the ARS market yet continued to sell the securities as "safe, liquid, money-market-like instruments, notwithstanding the risk." Under the terms of the settlement, Bank of America Investment Services Inc., also of Charlotte, and Bank of America Securities LLC of New York will buy back illiquid ARS at par-value from all retail customers between Oct. 1 and Dec. 31. The offer was extended to include all small-business customers who have up to $10 million on deposit and charitable-entity customers who have up to $25 million on deposit. The bank expects to record a pretax charge of about $275 million in connection with the buybacks. Bank of America “continues to cooperate fully with the SEC's and the New York attorney general's ongoing investigations,” the company said in a statement. The market for ARS, estimated at $330 billion, seized up last winter, leaving investors unable to cash out of their positions.

Latest News

Advisor moves: Ameriprise lands three RBC teams with $1.2B; Wells hails $900M recruiting haul
Advisor moves: Ameriprise lands three RBC teams with $1.2B; Wells hails $900M recruiting haul

Raymond James and Cetera also welcomed advisors from UBS and LPL as competition for experienced teams stays fierce

Atlanta B-D Arkadios Capital pays $500K to settle investor lawsuit involving former broker.
Atlanta B-D Arkadios Capital pays $500K to settle investor lawsuit involving former broker.

Jim Walesa worked in the securities industry for 39 years before leaving in 2021.

A tale of two consumers: The growing divide between Wall Street and Main Street
A tale of two consumers: The growing divide between Wall Street and Main Street

As the market turned from pricing in cuts to betting on hikes this year, the developing reality of a K-shaped economy has real implications for households and investors alike.

People moves: XYPN president Vince Hockett to retire in 2027
People moves: XYPN president Vince Hockett to retire in 2027

Also, SEI names LPL’s Kristie Edling-Day as CIO, TD Bank U.S. taps Hardeep Walia to lead wealth, and BMO adds an Illinois regional president

Family offices poured $68.3B into AI and RIA deals in Q3 2026
Family offices poured $68.3B into AI and RIA deals in Q3 2026

FINTRX data shows 342 company transactions in the quarter, with wealth management consolidation driving nearly one in seven deals.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor