UBS will buy back $1.5 billion in auction rate securities from New Jersey investors, Bloomberg reports. The repurchases, to be made by UBS Securities and UBS Financial Services, will resolve allegations that the firms failed to fully disclose risks.
The Zurich-based bank will pay New Jersey $3.7 million in civil penalties. The buybacks are part of the Swiss bank’s 2008 agreement with the North American Securities Administrators Association, under which it agreed to buy $18.6 billion worth of auction rate securities from institutional investors and private clients.
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