Auction Rate Securities = Bank Desperation

Wow, this keeps getting more and more interesting by the minute.  The latest in the mortgage market meltdown is the news that Citigroup and now UBS will buy back a combined $32 billion worth of auction rate securities that were sold fraudulently.  This is just another blow for cash-strapped mega-banks that have gone to great lengths to raise and maintain capital in this credit crunch. Billion-dollar buybacks sure don't help.  Shareholders rejoice! Not really. From Bloomberg: UBS AG, Switzerland's biggest bank, may pay more than Citigroup Inc. or Merrill Lynch & Co. to settle state and federal claims that it fraudulently sold auction-rate securities, a person briefed on the negotiations said. UBS is close to resolving those claims and may make a promise to retail and