Wells Fargo agrees to buy back soured securities

AP News
Posted: Nov 18, 2009 1:44 PM

The North American Securities Administrators Association says Wells Fargo has agreed to repurchase about $1.3 billion in soured auction-rate securities from clients.

Wells Fargo & Co. is one of more than a dozen financial firms that have agreed with regulators to buy back the risky investments, which lost most of their value when the market for them evaporated early in 2008 as the credit crisis worsened.

Financial companies have agreed to repurchase more than $61 billion in the securities.

Wells Fargo, based in San Francisco, has agreed to buy back, at face value, securities its customers purchased before Feb. 13, 2008.