Fidelity to buyback $300M ARS in settlement
Fidelity Investments has reached a settlement with New York and Massachusetts to buy back $300 million of auction rate securities.
Fidelity Investments has reached a settlement with New York and Massachusetts to buy back $300 million of auction rate securities.
“I applaud Fidelity for the actions that it has taken today and hope that they will serve as an example to other broker-dealers,” Mr. Cuomo said in a statement.
The Boston-based firm is the first retail broker to settle with the states. Several underwriters, including Citigroup Inc. and The Goldman Sachs Group Inc., both of New York, and UBS AG of Zurich, Switzerland, have settled claims in recent weeks.
The market became illiquid in February when trading ceased.
As a result, investors haven’t been able to sell the securities.
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