Merrill Lynch, Goldman Sachs and Deutsche Bank are the latest banks to reach settlement with US regulators over the sale of risky securities.
The banks have agreed to buy back billions of dollars in auction-rate Lawsuit threat to Merrill Lynch ...
Profits at Morgan Stanley tumble ...
Mugabe vows to 'fight' to retain power ... securities and pay fines, after allegations that they misled investors.
Of the three firms Merrill Lynch is to pay the highest fine of $125m (Ј66m).
Other banks that have reached similar settlements with regulators include Morgan Stanley and JP Morgan Chase.
New York Attorney General Andrew Cuomo has been leading the probe, with the support of federal and state regulators.
The banks have been accused of marketing the financial products, called auction-rate securities, as much safer than they were.
Under the latest deal with Mr Cuomo, Merrill Lynch said it would repurchase up to $12bn in auction rate securities as well as pay the $125m fine.
Deutsche Bank meanwhile has a $15m fine to pay and must buy back some $1bn of the investments.
Goldman Sachs has a $22.5m fine and has agreed to buy back $1.5bn in securities.
Earlier this year, Citigroup and Swiss banking giant UBS reached a settlement to buy back $26bn of the securities.
Following the latest settlement Mr Cuomo said: "This has been a great day of progress," adding that a number of banks were still being investigated.
(BBC)
<< Back