UBS To Repay $35M To Mass. For Auction Rate Sales

Law360, New York (May 7, 2008, 12:00 AM EDT) -- UBS AG agreed to return more than $35 million to Massachusetts municipalities and government agencies after state Attorney General Martha Coakley questioned whether the bank's auction rate securities were legal investments under state law, Coakley announced Wednesday.

The Swiss bank's U.S. units, UBS Financial Services Inc. and UBS Securities LLC, agreed to repurchase the securities at investment price after the AG's office questioned whether the purchasers were misled into believing auction rate securities were permissible, the AG said.

Massachusetts law forbids municipalities' entering into risky investments...
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