UBS AG, Switzerland’s largest bank, plans to purchase up to $ 3.5 billion auction rate preferred shares, after it has been the United States for the fraudulent sale of securities as alternatives to low risk of liquidity.

The customers who securities in the UBS accounts will be able to invest their money in their entirety, Zurich and company said yesterday. The offer, the first by a broker, applies to shares closed at the end of the tax-exempt funds managed by companies such as BlackRock Inc. Nuveen Investments Inc. This does not include the auction, the share of debts of the municipality or the student loan suppliers.

UBS was last month by Massachusetts Secretary of State William Galvin, said the investors were involved in the deception by brokers and financial advisers believe the titles were also ensure that any payment of cash dividends in more high. Galvin today called the announcement “ not enough”and said that he continue with his case.

“ It is certainly not to answer that we are looking statements”, he said in an interview. “ Many of our investors in Massachusetts are still blocked. The appeal will be in full speed to come.”

At least 15 prosecution of class action status were filed against the company of securities for the account of investors’ money has been frozen at the auction to the market rate in February broke in the middle of the impact of subprime mortgages crisis.

“ It’s fabulous,”Harry Newton, 66, an investor in New York with 3.5 million U.S. dollars in the auction for the share of preferred securities, said the decision of UBS. “ They were the worst of all brokerage firms that sell this kind.”

UBS said last month that he “ defend specific details of Galvin”costume. Rohini Pragasam UBS spokesman refused any comment yesterday.

Pressure on banks

UBS is 63 cents or 3.4 percent to 18.93 francs in 6:39 hours in the negotiations in Switzerland. The shares were up 7 percent in the last 12 months the company cut the market value to 55.9 billion Swiss francs ($ 55 billion).

“ Obviously, that is constructive, but also other measures, and there is no timetable,”David Chandler, 68, the main complainant in a case against UBS, said in an interview with his residence in San Diego.

UBS announces the exercise of pressure on other brokers to do, said Joseph Witt Hohn, a research analyst for Janney Montgomery Scott LLC in Philadelphia.

“ You can be sure that you go calls from customers will be surprised if the same thing,’’said Witt mockery.

Auction-rate securities were acquired by individuals and companies, auctions, the traders. Dividend rates were all seven, 28 or 35 days, a feature promoted by the brokers, such as the ability to buy or sell quickly. So much as $ 218 billion U.S. dollars to 330 billion allocation to one of the bonds and shares in circulation will remain frozen in February.

Losses on loans

UBS to finance the acquisitions by the new preference shares in a private placement through a trust, based on the consolidated balance sheet of the bank. The common stock will be revisited, a put option that guarantees its holder the right to sell, and money funds and other institutional investors.

The bank, the most in Europe of holdings in subprime-mortgage-backed securities, wrote a decrease of more than $ 38 billion in three-quarters of Mars, equivalent to more than two-thirds of justice, he had until the end of June 2007. UBS did not say how the acquisition has an impact on the outcome or the capital market.

UBS reduced the participation of loans to students, especially through an auction of securities in the amount of $ 974 million in the first three months of this year, although there have to to $ 10.4 billion pounds. The bank says that earlier this month, the second quarter is “ or just below the threshold of rentabilité”comme around 3 billion francs in tax credits to offset the losses in the investment bank.

Nuveen, Blackrock

UBS plan is similar to that of the three largest U.S. companies closed-end funds. Chicago-based Nuveen, BlackRock in New York and Boston on the basis of Eaton Vance Corp. intends, some preferred shares in circulation by new carry a put option that they hope to attract capital, the United States of fund money from the market, the Control of 3.5 billion U.S. dollars.

The bank has said that he is the directives by the Department of the Treasury of the United States and is compatible with the Securities and Exchange Commission to draft a new edition. The staff of the SEC has already closed the fund of the type of proposals.

UBS said that he hoped to do, “ the acquisition within 30 days after the resolution of these issues of regulation.”