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UBS, the embattled investment bank, is poised to pay $25 billion (£13 billion) to settle lawsuits relating to its role in the collapsed auction-rate securities market in what would be by far the largest deal so far. UBS is close to resolving the issue that has sparked lawsuits from US state regulators and the Securities and Exchange Commission by agreeing to buy back securities worth around $25 billion from retail and institutional clients, according to a Bloomberg report, citing a person briefed on the negotiations. Several Wall Street investment banks are accused of continuing to promote auction-rate securities in the knowledge that the market was about to collapse. A $25 billion settlement from UBS would dwarf deals announced by its rivals. Yesterday, Citigroup said it would pay around $19 billion to buy back securities... [read full story]
