UPDATE 1-Mass., Oppenheimer settle on auction-rate debt
* Oppenheimer to redeem auction-rate securities
* Will redeem 85 pct of customer accounts in state
BOSTON Feb 24 (Reuters) - Massachusetts' securities regulator said on Wednesday that Oppenheimer & Co has agreed to redeem auction-rate securities sold in the state before that market locked up in February 2008.
The company, a unit of Toronto-based Oppenheimer Holdings Inc (OPY.N), will redeem the securities from 85 percent of Massachusetts customer accounts, Secretary of the Commonwealth William Galvin said in a statement.
The broker-dealer has agreed to restore $31 million to U.S. customers with illiquid auction-rate securities in their portfolios, New York State Attorney General Andrew Cuomo said on Tuesday. [ID:N23144797] (Reporting by Scott Malone)