UBS Agrees To Buy Back $19 billion Of ARS From Hosed Clients*

UBS has agreed to buy back $19.4 billion in auction-rate securities in a settlement with the SEC and several state regulators. NYT:

As part of the deal, UBS customers with less than $1 million in auction-rate securities will get their money back by Oct. 31, while others will get their refund by Jan. 1, Mr. McNiff said. UBS also agreed to pay $150 million in fines, to be divided between Massachusetts and New York, he said.

A UBS spokesman, Kris Kagel, did not comment on the reported deal, but said, “We are consistently working with regulators toward a comprehensive solution.”

The deal is the latest, and by far the largest, in a string of settlements involving state officials.

Questions still remain over how UBS plans to finance the deal, and whether UBS will put the ARS on its book at face value, or just take an immediate multi-billion dollar writedown.

See Also:
Will Merrill and Citi Have To Take Huge Writedowns on ARS Buybacks?
UBS Aufhauser Out As ARS Scandal Worsens

UBS In Headlines For Insider Trading

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