In the first arbitration decided against Banc of America Securities regarding the sale of auction rate securities (ARS) to institutional investors, an independent panel of arbitrators from the Financial Industry Regulatory Authority (FINRA) found the investment bank liable for its actions in the sale to an institutional investor of ARS.

The panel ordered an award worth several millions to a corporate investor who bought student loan ARS from BofA and for which auctions started to fail in February 2008. Refer to FINRA Dispute Resolution Arbitration No. 08-04948.

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