Merrill Lynch reached a settlement with Massachusetts over auction-rate securities, the latest in a string a accords between regulators and Wall Street firms over the $330 billion market that collapsed in February.
Under the settlement, Merrill agreed to reimburse investors with accounts under $3 million this month and those with accounts of $100 million of less by January.
Earlier Thursday, New York Attorney General Andrew Cuomo threatened to bring Merrill to court unless it reached a settlement with his office today over the securities.
In an interview on CNBC, Cuomo said he has tried to reach a settlement with the Wall Street investment bank but has been unsuccessful.
The auction-rate securities market involved investors buying and selling instruments that resembled corporate debt, but the interest rates on the investments were reset at regular auctions, some as frequently as once a week.