“Wells Fargo Bank, agreed to pay $1.4 billion to investors to settle allegations that Wells Fargo promised strong returns on auction-rate securities, prior to the market freeze.” The bank will purchase back all non-liquid auction-rate securities it lent out to retail customers, aid organizations, and small businesses. California’s Attorney General filed the lawsuit against Wells Fargo with investor-protection group – The North American Securities Administrators Association, who regulate securities. “Wells Fargo marketed the securities as highly lucrative cash like investments. The investors, businesses, and charities were told, they could get their money back every eight days.” The settlement resolves a $1.9 million lawsuit that will be paid to several states.
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