Recent settlements by JPMorgan and Morgan Stanley in which they agreed to repurchase auction-rate securities have brought the total size of the industry buy-back to $48 billion. The Financial Times reports that JPMorgan and Morgan Stanley have agreed collectively to buy back about $7 billion worth of ARS from retail investors, and pay fines of $25m and $35m respectively.
This follows deals by Citigroup and UBS to buy back more than $26 billion of ARS, and a voluntary offer by Merrill Lynch to buy back about $10billion in ARS.
