OAKLAND, Calif. — California Attorney General Jerry Brown announced a $1.4 billion settlement with three Wells Fargo & Co. affiliates to pay back investors, charities and small businesses that purchased auction-rate securities.

Under the settlement, Brown said, Wells Fargo will buy back $1.4 billion in non-liquid auction-rate securities from thousands of retail customers, charities and small businesses nationwide, including about $700 million to California investors. Wells Fargo will also pay legal costs and future monitoring expenses incurred by Brown's office, Brown said.

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