Wednesday, June 10, 2009

Elsie Law's Daily Dose Of The Law

Financial corporations, Wells Fargo & Company and Bank of America, have agreed to pay out settlements in cases that claim that the financial entities misled investors regarding the value and risk-level of certain securities.

According to The Wall Street Journal, Wells Fargo agreed to pay $40 million in order to settle civil, state, and federal securities fraud cases that state that the company: "Overvalued the holdings of its Evergreen Ultra Short Opportunities Fund and then, when it was going to lower the value of the securities, informed only select investors."

The Wall Street Journal also states that Bank of America reached a settlement with the California Department of Corporations in which they vowed that they would, "facilitate the return of more than $3 billion to California [based] clients who purchased auction rate securities [in] an investment that went sour last year."

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