Today, Morgan Stanley and JP Morgan announced that they were following the precedent set by UBS and Citigroup in order to settle part of their auction-rate securities problems. The tentative agreements which JP Morgan and Morgan Stanley have entered into with regulators which will require that the firms will repurchase all auction-rate securities that remain held by their retail customers (identified as individual investors, charitable organizations and small businesses having assets of $10 million or less), reimburse such retail customers for any losses that they sustained in selling their auction-rate securities, set up a claims resolution process to address any unusual damages sustained by retail customers, and pay regulatory fines. The tentative agreements also provide that the firms would help their larger institutional clients (those with more than $10 million in assets) sell their holdings.