Wells Fargo to repay 1.3 $ billion to investors

NEW YORK - Wells Fargo Investments LLC will repay about $1.3 billion to investors, charities and small businesses whose funds were frozen in the auction-rate securities market in the latest of a series of settlements with state securities regulators, an industry association said on Wednesday.

The company, a unit of San Francisco-based Wells Fargo & Co, has agreed to offer to buy back auction-rate securities by mid-February 2010, the North American Securities Administrators Association said in a statement.

Wells Fargo will also reimburse clients who sold securities at a discount after the market froze and pay $1.9 million in penalties to states, said the statement.