The Colorado Division of Securities has settled an eighth case against companies who dealt in auction rate securities.
Deutsche Bank securities will buy back $21.4 million worth of securities from retail Colorado investors who found themselves unable to sell securities after the market was frozen.
Deutsche joins Citigroup Global Markets, Bank of America Securities, Credit Suisse Securities, JPMorgan Chase & Co., Merrill Lynch, RBC Capital Markets and Wachovia Securities in settling with the state.
The settlement ended an investigation by state securities regulations into allegations that the company failed to make sure its sales representative made appropriate disclosures to customers regarding the nature and risks of auction rate securities. The markets froze during Feb. 2008, triggering a flood of complaints from investors who could not withdraw money from their accounts.