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Monday, August 18, 2008

Wachovia reaches settlement about bad securities it sold

August 18 2008
Investors who bought auction rate securities through Wachovia Securities LLC and Wachovia Capital Markets LLC. will return the securities to Wachovia for roughly $9 billion under a preliminary settlement.
Government regulators have been investigating alleged misrepresentations made by Wachovia to thousands of its customers about the liquidity risk associated with auction-rate securities. The settlement will bring real relief to tens of thousands of unsuspecting investors who were not given the forthright information they needed in the process of purchasing auction-rate securities. These investors will now get their money back.
But there speculations that some investors may be left out of auction rate settlement.


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