UBS AG will pay Massachusetts $1 million as part of its agreement to settle the state's probe into the investment bank's inappropriate sale of auction-rate securities to 17 cities and towns.
UBS will also repurchase $3.4 million of auction-rate securities sold to the municipalities, according to a statement from Massachusetts Attorney General Martha Coakley issued on Wednesday.
UBS is paying $750,000 to the state to cover fees and expenses and $250,000 to provide support to cities and towns impacted by the breakdown of the auction rate markets.
Under a preliminary May agreement, UBS agreed to repurchase $35 million of the securities, which have been impossible to sell since credit markets froze up in January.
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