UBS Returns Money to Massachusetts Cities That Purchases ARSs

UBS concluded an investigation by the Massachusetts Attorney General and agreed to return $35 million to Massachusetts municipalities that bought auction rate securities for short-term cash needs and were unable to sell them later when the auction market dried up.  UBS said that ARSs had not been permissible for the municipalities to buy, adding that "The reasons supporting this agreement apply only to the circumstances of this specific case under Massachusetts law." WSJ, UBS to Return Investor Funds.