Securities scandal: UBS to pay out $19bn in deal with regulators

Securities scandal: UBS to pay out $19bn in deal with regulators UBS is to pay fines and reimburse customers to the tune of nearly $19bn (£10bn) to compensate for the alleged mis-sale of auction-rate securities. In a deal being finalised last night, the Swiss bank was set to follow Citigroup in settling charges by US regulators that auction-rate securities were inappropriately pushed on unsuspecting customers for months before the market for them seized up in February. It is expected to pay $150m in fines. Merrill Lynch has also offered to buy back securities although it wants to take a full year to reimburse $12bn. Wachovia Securities and the Bank of New York Mellon are among other companies caught up in the affair. The hitherto obscure securities have their interest rates set at weekly or monthly auctions. They were once... [read full story]