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Article: B of A and RBC Auction-Rate Pacts.(Market Monitor)(Bank of America Corp.)(Royal Bank of Canada)(auction-rate securities)
- Article from:
- American Banker
- Article date:
- October 9, 2008
- Author:
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Byline: Lynn Hume, The Bond Buyer
Bank of America Corp. and Royal Bank of Canada reached settlements with federal and state regulators over charges they misled clients on auction-rate securities by claiming they were liquid and cashlike.
Under the agreements, Bank of America Securities LLC and Bank of America Investment Services Inc. will buy back from 5,500 individual investors, small businesses, and small charities $4.7 billion of ARS they purchased from B of A before the ARS market collapsed in February. B of A will also use its best efforts to provide up to $5 billion in liquidity to businesses, charities, and institutional investors, and will pay ...