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Wells Fargo ordered to buy back securities worth $94 million


Credit: Reuters/Rick Wilking


A customer enters the Wells Fargo bank branch in Golden, Colorado October 11, 2013.


The San Francisco-based bank's brokerage unit was ordered to pay at par value to investors including James Cohen and a family trust for the securities, the Financial Industry Regulatory Authority arbitration panel said in an award dated December 24. ( link.reuters.com/bax65v)


The Cohen family accused Wells Fargo Advisors of fraud, negligence and breach of fiduciary duty related to investments in municipal auction-rate securities or MARS.


The family sought damages of $20 million for investments in MARS starting in March 2008, which the panel denied.


A Wells Fargo spokesman Tony Mattera told Reuters the bank was disappointed by the decision and was reviewing it. A lawyer for the Cohens wasn't available for comment.


(Reporting by Varun Aggarwal and Narottam Medhora in Bangalore; Editing by Ken Wills)


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