Transcripts

Auction Rate Security Reimbursements

SUSIE GHARIB: Three more big Wall Street firms have agreed to reimburse investors holding auction-rate securities. Merrill Lynch, Goldman Sachs and Deutsche Bank reached a settlement late today with New York Attorney General Andrew Cuomo. Under the agreement, Merrill will buy back between $10 and $12 billion of auction-rate securities, starting October 1. The investment firm will also pay a fine of $125 million. Goldman will buy back $1.5 billion and pay a penalty of $22.5 million. And Deutsche Bank will reimburse its customers $1 billion and pay a $15 million fine. Cuomo has now reached auction-rate securities deals with most major banks and brokerage firms, with one holdout: Bank of America. Also today, Merrill reached a separate settlement with Massachusetts' secretary of state to buy back $10 billion in securities.