Cuomo Sues UBS Over ARSes

Posted by Bess Levin, Jul 24, 2008, 12:22pm

Attorney General Andrew Cuomo filed suit against UBS today claiming the firm deceived investors re: auction rate securities by telling them they were cash equivalents, and that senior executives divested themselves of $21 million in ARSes as the shit hit the fan, all the while continuing to tell customers everything was cool. Surprisingly, UBS said earlier this morning that it was not psyched at the prospect of being sued by the AG, telling the Journal, "A filing of a complaint at this point would be disappointing, given that we are working with regulators, peers, and industry groups to develop solutions addressing the liquidity issues in the ARS market." In related news, Senator Carl Levin is still rallying hard to get the Swiss bank shut down entirely.

New York's Cuomo Sues UBS, Alleges Deceptive Auction-Rate Sales [Bloomberg]
Cuomo Readies UBS Civil Suit [WSJ]

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Tags: UBS

Comments

1

Posted by guest, Jul 24, 2008 12:25PM

Nazi bastards.

2

Posted by guest, Jul 24, 2008 12:39PM

Elliot Cuomo

3

Posted by Anal_yst, Jul 24, 2008 1:31PM

big surprise here.

On a slight tangent, its really sad that the supposed brightest guys, the senior executives who keep getting nabbed while screwing the little guy, can't, for the life of them, figure out how to do it discretely so as to not get caught. Sigh...

4

Posted by guest, Jul 24, 2008 1:39PM

Hope someone takes a closer look at Merrill Lynch too. It seems to consider itself above the law.

http://eeoc0sues0merrilllynch.wordpress.com/

5

Posted by guest, Jul 24, 2008 2:02PM

"Cuomo"

Stopped reading right there.

6

Posted by guest, Jul 24, 2008 2:14PM

I thought the UBS execs did their insider trading in individual offshore accounts in order to avoid the cap gains. Call me crazy...

7

Posted by guest, Jul 24, 2008 2:22PM

ubs is a joke

8

Posted by guest, Jul 24, 2008 7:42PM

ARSes is probably correct as UBS's Locasto and Fitzpatrick seem set to receive the pink torpedo treatment at Arizona State Pen.

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