Comerica Inc. said it will buy back nearly $1.5 billion of auction-rate securities and cut its dividend.
The $66 billion-asset Dallas company said Thursday that it had settled with the Financial Industry Regulatory Authority, Michigan's attorney general, and the Michigan Office of Financial and Insurance Regulation and would offer to repurchase the securities from about 1,500 account holders. Comerica said the buyback would reduce its third-quarter earnings by $75 million, or 50 cents a share, and it said it would trim its dividend by 50% beginning in the fourth quarter.
