Banc of America ordered to pay $3.6M fine to Texas over auction rate securities
By APWednesday, July 8, 2009
Texas securities board imposes $3.6M fine
AUSTIN, Texas — The Texas State Securities Board has ordered Bank of America Securities LLC and Banc of America Investment Services to pay a $3.6 million fine to the state.
In a statement issued Tuesday, State Securities Commissioner Denise Voigt Crawford said the fine was imposed for misleading investors about the safety of the auction-rate securities market.
Banc of America also must buy back the securities from Texas investors.
The final consent order says Banc of America knew there were growing risks in the auction process but didn’t tell its retail customers of the potential risks from a failed auction.
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