Regulators file charges against UBS

Published: June 26, 2008 at 2:49 PM

BOSTON, June 26 (UPI) -- Securities regulators in Massachusetts filed charges against UBS Financial Inc. for selling securities allegedly without advising customers of their risks.

The complaint concerns auction-rate securities, which are frequently sold to schools and municipalities, The Boston Globe reported Thursday.

The auction-rate market collapsed in February and hasn't reopened, leaving investors stuck with an estimated $220 billion worth of securities they cannot sell, the Globe reported.

But, before its collapse, UBS continued selling the securities to some customers, while warning others that the market was risky, the Globe reported.

Securities regulators in Massachusetts have also been investigating Banc of America Investment Services Inc. and Merrill Lynch & Co., the Globe reported.

In early May, UBS agreed to purchase $37 million worth of securities sold to 17 municipalities and to the Massachusetts Turnpike Authority, the Globe reported.

© 2008 United Press International, Inc. All Rights Reserved.
Order reprints



Additional News Stories
NHL: Edmonton 4, Phoenix 0 (9 min)
NBA: Memphis 116, Sacramento 105 (28 min)
NHL: Dallas 2, Carolina 0 (31 min)
NBA: San Antonio 112, Milwaukee 98 (32 min)
COL BKB: Purdue 73, Tennessee 72 (34 min)
UPI Sports Calendar for Tuesday, Nov. 24 (39 min)
COL BKB: Clemson 102, Winthrop 66
fark
Scottish city declines to sanction official drunken street party for New Year's, since citizens...
Recent immigrants to Canada more likely to be male, younger, better educated, work for smaller companies...
Women with a spare tire are more likely to go all whargarbl as they age. As if heart disease, diabetes,...
This may be the worst police sketch in the history of police sketches
War crimes should be disallowed in video games, just like they are in books, TV, and movies
School board won't allow students to wear anti-Islam t-shirts. ACLU vows legal jihad on their behalf...