TD Ameritrade says it will repurchase $304 million in auction rate securities in settlement
By APMonday, March 29, 2010
TD Ameritrade pays $304M in securities settlement
OMAHA, Neb. — Online brokerage TD Ameritrade Holding Corp. will repurchase roughly $300 million in auction-rate securities from investors to comply with a settlement announced last summer.
Ameritrade said in a document filed with the Securities and Exchange Commission Monday that its customers had asked the Omaha-based firm to repurchase $304 million before the deadlines passed.
Auction-rate securities are instruments that resemble corporate debt whose interest rates were reset at regular auctions. They were marketed as being safe as cash, but the market for them fell apart in early 2008 amid the downturn in the credit markets.
Last fall, Ameritrade officials predicted the company would repurchase between $260 million and $320 million in auction-rate securities.
On the Net:
TD Ameritrade Holding Corp.: www.amtd.com
