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ARTICLE · 12 AUGUST 2008

Auction Rate Securities—Recent Settlements With SEC And Other Regulators

Fenwick
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On August 7 and 8, the Securities and Exchange Commission announced settlements with Citigroup Global Markets and UBS Securities and UBS Financial Services Inc.

United StatesFinance and Banking
Jeffrey Vetter
Jeffrey Vetter
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On August 7 and 8, the Securities and Exchange Commission announced settlements with Citigroup Global Markets and UBS Securities and UBS Financial Services Inc. These settlements appear to pave the way for retail and institutional customers to recoup their investments in auction rate securities ("ARS") that had effectively been frozen since the beginning of the year.

While the full settlement agreements have not yet been made public, according to the SEC announcement, both Citigroup and UBS will be required to repurchase at par the ARS of retail investors in the near term, and use best efforts to repurchase at par the ARS of institutional investors by the end of 2009 or 2010.

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