WASHINGTON - Merrill Lynch & Co., Goldman, Sachs & Co., and Deutsche Bank AG will buy back at par as much as $14.5 billion of auction-rate securities and pay $162.5 million of fines under separate agreements in principle reached with New York Attorney General Andrew Cuomo and the North American Securities Administrators Association.

Cuomo and Karen Tyler, president of NASAA and commissioner of the North Dakota Securities Department, detailed the settlements along during a telephone press conference yesterday. Cuomo said he reserves the right to file charges against individuals at those firms over questionable ARS sales practices and that his office is investigating multiple individuals at several banks, but he declined to identify anyone.

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.