Bank of America has reached an agreement in principle with the Massachusetts Securities Division to compensate 5,500 investors in its auction-rate securities. Under the deal BofA will buy back $4.5 billion of the instruments at par value. “The company neither admits nor denies allegations of wrongdoing,” according to the BofA announcement. Investigations by the Security and Exchange Commission and New York State attorney general’s office were continuing as of September 15.

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