UBS agrees to pay $2.2M to Michigan in settlement, offer to buy back $875M in securities
By APThursday, May 27, 2010
UBS to pay $2.2 million to Michigan in settlement
LANSING, Mich. — Michigan says UBS Securities LLC and UBS Financial Services Inc. have agreed to pay about $2.2 million as part of a 2008 settlement related to the sale of auction-rate securities.
The Office of Financial and Insurance Regulation also said Wednesday that UBS must offer to buy back about $875 million in the securities from Michigan investors. The state says UBS misrepresented the securities as safe, cash-like investments.
UBS says in a statement it’s pleased to have reached the agreement.
The state has previously reached settlements with other financial services businesses over such sales. In all, the state says it’s gotten more than $9.4 million in settlement payments and more than $4.3 billion in reimbursement offers.
