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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