WASHINGTON -UBS Securities LLC will pay Massachusetts $1 million after an agreement was reached yesterday resulting from state Attorney General Martha Coakley's allegation that the bank misled cities and towns into investing in "risky" auction-rate securities.

UBS will also return $3.4 million to four cities and towns, in addition to $35 million the bank agreed in early May to return to 17 other municipalities and the Massachusetts Turnpike Authority, according to a release from Coakley.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.