This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7576081.stm

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
More banks settle securities case More banks settle securities case
(about 8 hours later)
Merrill Lynch, Goldman Sachs and Deutsche Bank are the latest banks to reach settlement with US regulators over the sale of risky securities. Merrill Lynch, Goldman Sachs and Deutsche Bank are the latest banks to reach a settlement with US regulators over the sale of risky securities.
The banks have agreed to buy back billions of dollars in auction-rate securities and pay fines, after allegations that they misled investors.The banks have agreed to buy back billions of dollars in auction-rate securities and pay fines, after allegations that they misled investors.
Of the three firms Merrill Lynch is to pay the highest fine of $125m (£66m).Of the three firms Merrill Lynch is to pay the highest fine of $125m (£66m).
Other banks that have reached similar settlements with regulators include Morgan Stanley and JP Morgan Chase.Other banks that have reached similar settlements with regulators include Morgan Stanley and JP Morgan Chase.
New York Attorney General Andrew Cuomo has been leading the probe, with the support of federal and state regulators.New York Attorney General Andrew Cuomo has been leading the probe, with the support of federal and state regulators.
The banks have been accused of marketing the financial products, called auction-rate securities, as much safer than they were.The banks have been accused of marketing the financial products, called auction-rate securities, as much safer than they were.
Investors were told that auction-rate securities would return more than money market investments and be easy to sell.
FINES PAID SO FAR UBS: $150m Merrill Lynch: $125mCitigroup: $100m Morgan Stanley: $35m JP Morgan: $25m Goldman Sachs: $22.5m Deutsche Bank: $15m
Under the latest deal with Mr Cuomo, Merrill Lynch said it would repurchase up to $12bn in auction rate securities as well as pay the $125m fine.Under the latest deal with Mr Cuomo, Merrill Lynch said it would repurchase up to $12bn in auction rate securities as well as pay the $125m fine.
Deutsche Bank meanwhile has a $15m fine to pay and must buy back some $1bn of the investments.Deutsche Bank meanwhile has a $15m fine to pay and must buy back some $1bn of the investments.
Goldman Sachs has a $22.5m fine and has agreed to buy back $1.5bn in securities.Goldman Sachs has a $22.5m fine and has agreed to buy back $1.5bn in securities.
Earlier this year, Citigroup and Swiss banking giant UBS reached a settlement to buy back $26bn of the securities.Earlier this year, Citigroup and Swiss banking giant UBS reached a settlement to buy back $26bn of the securities.
Following the latest settlement Mr Cuomo said: "This has been a great day of progress," adding that a number of banks were still being investigated.Following the latest settlement Mr Cuomo said: "This has been a great day of progress," adding that a number of banks were still being investigated.