Home
American banks settle claims over debt instruments
Detroit News.Net
Thursday 21st August, 2008
Deutsche Bank, Goldman Sachs, and Merrill Lynch, have undertaken to buy back up to $14.5 billion of auction-rate securities, and pay $162 million in fines, to avoid prosecution for failing to fully inform investors.
The settlement follows investigations by New York Attorney General Andrew Cuomo, the Securities and Exchange Commission, and a task force of twelve state securities regulators.
The final settlement, with Merrill Lynch, was reached on Thursday. The banking giant will begin buying back securities estimated to have a face-value of $10 billion, and will pay $125 million in fines.
Although the banks have been largely absolved of the matter, executives at the three institutions could still face prosecution. Commenting on the settlements reached with the banks, Cuomo said, 'We could still bring actions against individuals.'
The settlement follows investigations by New York Attorney General Andrew Cuomo, the SEC, and state securities regulators.
 Email this story to a friend
Have your say on this story
|
|
