Cuomo announces bevy of ARS settlements

In the latest in a series of auction rate securities settlements with states, New York Attorney General Andrew Cuomo this afternoon announced settlements with Deutsche Bank AG, The Goldman Sachs Group Inc. and Merrill Lynch & Co. Inc. Frankfurt, Germany-based Deutsche will buy back $1 billion in auction rate securities, Goldman Sachs will buy back $1.5 billion worth and Merrill will buy back between $10 billion and $12 billion in ARS. In terms of penalties, Deutsche Bank will pay $15 million, Goldman will pay $22.5 million and Merrill will be on the hook for a whopping $125 million. Mr. Cuomo spent all day meeting with Merrill chief executive John A. Thain to hammer out the Merrill settlement, according to a conference call with the attorney general’s office. “With Merrill, we were right up against the deadline,” Mr. Cuomo said during the conference call. And he may not be finished yet. Mr. Cuomo said he is working on settlements with other companies, including Charlotte, N.C.-based Bank of America Corp.