The Financial Industry Regulatory Authority announced Thursday it has reached settlements with units of HSBC and U.S. Bancorp related to the sale of auction rate securities that became illiquid when auctions froze in February 2008.

HSBC Securities, which was fined $1.5 million, had by July 2008 repurchased more than 90% of its then customers’ ARS holdings and in October 2008 it offered to repurchase all of the remaining auction rate securities held in those customers' HSBC accounts.  

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