13 minutes ago NEW YORK (Reuters) - U.S. and state regulators are close to reaching a settlement with multiple banks accused of selling auction-rate securities under false pretenses that would force them to repurchase billions of dollars of the now-illiquid securities at face value, people familiar with the matter said on Wednesday.A five-month investigation led by New York Attorney General Andrew Cuomo and the Securities and Exchange Commission into the auction-rate market led to agreements last week with Citigroup (C.N) and UBS (UBSN.VX). These banks will repurchase securities and together pay $250 million in fines.
On Monday, New York put pressure on JPMorgan Chase & Co (JPM.N), Morgan Stanley (MS.N) and Wachovia Corp (WB.N) to enter settlement talks that would yield similar terms.
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