Merrill Lynch faced allegations from the Massachusetts Securities Division (MSD) for unethical practices in selling auction rate securities (ARS) to the city of Springfield. Without admitting guilt, Merrill Lynch agreed to buy back the ARS at par value and cease violations of the Massachusetts Uniform Securities Act. Additionally, Merrill Lynch entered into consent orders with various state regulators to resolve issues related to ARS sales, agreeing to buy back ARS from eligible investors, pay civil penalties, and provide liquidity solutions.
documents/EFTA01374035.pdf
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