JPMorgan and Morgan Stanley were Wednesday night nearing settlements with regulators to buy back billions of dollars worth of auction rate securities from investors, people briefed on the negotiations said.

The two banks, which are also likely to pay fines, would become the latest firms to give in to pressure from regulators. JPMorgan’s clients hold about $5bn in ARS, of which $3bn belongs to retail investors. Morgan Stanley said this week that it was willing to buy back about $4.5bn in ARS.