To settle far-reaching charges that it "rigged" the muni bond investment process, UBS has agreed to pay $160 million.
The Swiss bank will return $47 million to the municipalities the SEC claims it manipulated in order to capture the money they raised in their bond offerings.
After all, muni borrowers need to invest all the cash they raise in their debt offerings before they spend it on roads, schools, and other projects.
As a major agent bidding for that business, UBS allegedly steered that money to favored products without respecting the process.
Bank of America settled a similar case late last year, paying $137 million.