The Massachusetts Securities Division alleged violations by Merrill in the sale of auction rate securities (ARS) to the City of Springfield. Merrill agreed to cease and desist from violations, undertook certain actions, and entered into consent orders with state regulators to resolve issues related to ARS sales. This included buying back ARS from investors, paying differences for ARS sold below par, and participating in arbitration for damages claims. Merrill's affiliate BAS also entered into similar agreements.
documents/EFTA01374039.pdf
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