Banc of America Securities LLC, Banc of America Investment Services Inc., and RBC Capital Markets Corp. have agreed to buy back at par a total of almost $5.6 billion of auction-rate securities from retail investors under preliminary settlements reached with federal and state regulators over charges they engaged in abusive ARS sales practices.

The preliminary settlements were announced yesterday by the North American Securities Administrators Association, a group of state securities regulators, and the Securities and Exchange Commission, but also include as parties the Financial Industry Regulatory Authority and the New York attorney general's office.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.