Add Comerica to the lengthy list of banks settling ARS investigations with state Attorneys General. Michigan Attorney General Mike Cox announced today that Comerica Bank will repay 1,500 investors more than $1 billion by the end of the year to settle an investigation by his office into whether the lender misled investors about the risks associated with auction-rate securities, according to the Detroit News.
Cox said Comerica marketing materials told investors the securities would be just like cash and could be liquidated at any time, even though the bank knew that was not the case and the market for ARS was actually collapsing. Comerica will reimburse investors $1.46 billion.
