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Cuomo Sues UBS Over ARSes

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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]


Bonus Watch '13: UBS

The Swiss bank will reportedly announce today that it's going to be doing things a little differently around here re: compensation. One, deferrals will start at $250,000 and two, rather than being paid in UBS stock, the non-cash portion of 6,500 senior employees' bonuses will come in the form of subordinated debt that can and will be wiped out in the event the amount of capital on hand falls below the level required by EU regulators, putting the onus on everyone to make sure no one pulls an Adoboli and avoids multi-billion dollar fuck-ups in general.

Bonus Watch '13: UBS

...employees will get their bonus numbers when management feels like giving them their bonus numbers!