Morgan Stanley has repurchased $322.7 million of auction-rate securities (ARS) from New Jersey customers to settle state allegations that it misled investors, The Wall Street Journal reports. The buyback is part of Morgan Stanley’s $4.5 billion repurchase agreement of August 2008. As per the consent order, Morgan Stanley also paid $1.56 million in civil penalties to the state. TD Ameritrade also agreed to buy back $305 million in ARS from clients in 2010, with $16.1 million coming from its New Jersey investors.
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