Brokerage firms are beginning to make peace with investors who bought auction-rate securities, income investments that had been pitched to them as safe but turned out to be anything but. Many found their accounts frozen along with the market for the securities.
On Friday, UBS AG agreed to buy back $18.6-billion of the securities from customers, following Thursday's $7-billion buyback announced by Citigroup.
Customers who sold after Feb. 13 will be reimbursed for losses. The settlements, which affect more than 80,000 investors, are a result of investigations led by New York Attorney General Andrew Cuomo and other regulators, including Florida's Office of Financial Regulation.