Wells Fargo was ordered by an arbitration panel to buy back about $94m of auction-rate securities from investors.
Bloomberg reports that Wells Fargo Advisors, the bank’s brokerage unit, must pay par value to investors including James S. Cohen and a family trust for the securities, the Financial Industry Regulatory Authority arbitration panel said in a decision dated December 24th. The investors’ request for $20m in damages was denied.
The $330bn worldwide market for auction-rate securities collapsed during the 2008 credit crunch as potential buyers vanished.
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