In December, Banc of America reached a $137 million settlement over charges of municipal bond derivative bid rigging.
In the UBS case, the SEC compliant alleged that bankers manipulated bids to temporarily invest cash from municipal bonds until debt could be spent by borrowers for capital projects. The bank rigged at least 100 bids for municipal borrowers, including one major Colorado-based health system, the SEC complaint said.
The bank cooperated fully with the investigation, UBS said in a written statement. “The underlying transactions were entered into in a business that no longer exists and involved employees who are no longer with the firm,” the statement said.
The Justice Department said in a statement UBS “admits, acknowledged and accepts responsibility for illegal, anticompetitive conduct by its former employees.”