08 August 2008

UBS Settles on Auction Rate Securities; BoA Hit with Subpoenas

UBS has settled with the states of Massachusetts and New York, and agreed to buy $19.4 billion in auction rate securities at face value, and pay $150 million in fines.

Meanwhile, Bank of America has received subpoenas from the SEC and other agencies on its ARS activities.

Financial "innovation", the gift that keeps on giving.

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