New York Attorney General Set to Charge UBS with Misrepresenting ARS's

-->

New York Attorney General Charges UBS with Misrepresenting ARS’s

On July 25, 2008, in Auction Rate Securities, Securities Industry (general), by Investor's Watchblog

According to the Wall Street Journal, New York Attorney General Andrew Cuomo has sued UBS, claiming that the Zurich-based banking giant misrepresented “to clients the risks of auction-rate securities before the $330 billion auction-rate market seized up earlier this year.”
According to Cuomo, UBS sold auction-rate securities as cash equivalents – perfectly safe and liquid – when [...]

According to the Wall Street Journal, New York Attorney General Andrew Cuomo has sued UBS, claiming that the Zurich-based banking giant misrepresented “to clients the risks of auction-rate securities before the $330 billion auction-rate market seized up earlier this year.”

According to Cuomo, UBS sold auction-rate securities as cash equivalents – perfectly safe and liquid – when it had reason to know that the market for the securities was collapsing. The WSJ reports that Cuomo’s probe revealed that “UBS executives allegedly sold off $21 million in personal holdings of auction-rate securities as the market started to collapse but continued to sell the securities to customers at the time.”

UBS says that it will vigorously defend the suit. Stay tuned to Investor’s Watchblog for updates.