Mich. AG settles with Comerica in securities probe

DETROIT (AP) -- Michigan Attorney General Mike Cox says his office has reached a settlement with the investment arm of Comerica Inc. over the sale of $1.46 billion in auction-rate securities.

Comerica has agreed to offer full buybacks to any customer who bought the risky investments. Comerica also must pay a $10,000 fine to the state and an additional $100,000 to an investment advocacy group.

Cox announced the conclusion of his probe in Detroit on Thursday, saying there was no indication Comerica committed a crime.

Comerica Chairman and Chief Executive Ralph W. Babb says the deal will provide relief to clients in the face of "unprecedented market conditions."

The Dallas-based company joins a long list of major financial institutions to reach similar settlements with regulators.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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