Massachusetts Secretary of State William F. Galvin announced today that his office has reached a settlement in principle with Banc of America Investment Services Inc. and Banc of America Securities LLC (“Bank of America”) concerning ARS.
As reported in the Boston Globe, Galvin’s office stated that the settlement calls for Bank of America to buy back all illiquid ARS, at par value, from all Bank of America retail customers nationwide. The buy back will begin October 1, 2008 and continue through until December 31, 2008. The offer also will go out to all small business customers who have up to $10 million on deposit and all ARS of all charitable entity customers who have up to $25 million on deposit.
UPDATE: The WSJ reports that the settlement calls for Banc of America to buy back $4.5 billion in ARS held by 5,500 customers.