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Banks Are Also Paying a Price For the Auction Rate Securities

Bank of America has agreed to pay settlement of $28-$0 million, to reimburse  customers cheated through the sale of auction rate securities. Hopefully this will deter future activities of this sort.

Wells Fargo Bank (NYSE:WFC), which we, unlike Warren Buffett, consider a "stinker," was also involved in the settlement.

Auction rate securities were one of the the bigger "scams" recently available in the marketplace, because issuers had great latitude in (mis) marking them.

Disclosure: Long BRK/A, BRK/B. Formerly Long BAC. Never long WFC.