Wachovia Securities and Wachovia Capital Markets would buy back or provide liquidity for up to $9 billion of auction rate securities and would pay $50 million in fines to Missouri and other states that investigated the firm’s ARS sales practices, under a preliminary settlement reached with federal and state regulators.

Under the agreement, the firms would buy back about $5.7 billion of ARS held by 40,000 retail customers — individual investors, charities and small businesses. The firm also agreed to stipulations that were laid out in previous federal and state settlement agreements with Citigroup Global Markets and UBS AG.

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