UBS to settle with regulators for $19.4 billion

Another billion dollar settlement was announced today involving an investment bank and auction rate securities (ARS). 

UBS has agreed to a $19.4 billion settlement with federal and state regulators stemming from charges that the bank misled investors in the ARS market.

In addition to buying back the securities it allegedly misled investors into purchasing, UBS has also agreed to pay $150 million in fines to settle all state and federal complaints.

Many investment banks have been in the news for continuing to sell auction rate securities to investors after finding out that the market was going to collapse.  A wave of ARS buyback announcements began yesterday with Citigroup, closely followed by Merrill Lynch.

Several states are investigating several more investment banks, so more buybacks could be in the pipeline.