Investment bank UBS has settled state and federal investigations into municipal bond derivative transactions from 2001 to 2004 for $160 million, including $63 million for restitution to governments and nonprofits in two dozen states.
An investigation led by New York and Connecticut, where the Swiss company's U.S. subsidiary is based, began in 2008.
New York Attorney General Eric Schneiderman says some UBS employees and individuals at other institutions fixed bids, resulting in worse derivatives contract terms for governments and nonprofits.
UBS says it is no longer in that business and those employees no longer work there. It says the full settlement amount, which included a $22 million with the IRS for regulatory violations, was provisioned in prior quarters and won't affect current business or future results.