JPMorgan to buy back $3 billion of auction-rate securities

After CitiGroup, UBS and Morgan Stanley, it is now JPMorgan's turn to buy back at face value the auction-rate securities it sold to clients for an amount of 3 billion USD:
NEW YORK (AP) -- JPMorgan Chase & Co. and Morgan Stanley on Thursday became the latest banks to reach settlements with New York Attorney General Andrew Cuomo and other regulators as part of a investigation into the collapse of the auction-rate securities market.
The pair of banks will repurchase a combined $7 billion in the troubled securities at face value from investors. Morgan Stanley agreed to pay a fine of $35 million, while JPMorgan will pay a fine of $25 million.
Like last week's settlements, JPMorgan and Morgan Stanley agreed to repurchase the securities, and will reimburse customers who sold their securities at a loss after the market collapsed in February.
JPMorgan will repurchase all securities it sold to retail customers, charities and small to mid-sized businesses by Nov. 12. JPMorgan will also buy back any securities sold by Bear Stearns, which it acquired earlier in the year.
JPMorgan's repurchase offer will cover $3 billion in auction-rate securities sold to about 10,000 customers.

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