The SEC’s Division of Enforcement today announced preliminary settlements in principle with both Bank of America and RBC Capital Markets Corp. The SEC stated that the settlement with Bank of America (specifically with Banc of America Securities LLC and Banc of America Investment Services, Inc.) would provide 5,500 individual investors, small businesses, and small charities the opportunity to sell back to Bank of America up to $4.7 billion in auction rate securities they purchased before the ARS market collapsed in February 2008.
The SEC stated that the settlement with RBC would provide individual investors, small businesses, small nonprofits, charities and religious organizations the opportunity to sell back to RBC all of the auction rate securities they purchased from RBC before the ARS market collapsed in February 2008.
Read the SEC’s press release regarding Bank of America
Read the SEC’s press release regarding RBC Capital Markets
