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UBS In Trouble Yet Again

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UBS simply cannot buy a break these days. After weathering tens of billions in writedowns and losses and the US government's attempt to crack open its bank account list, the bank now has another problem on its hands. Securities regulators from New Hampshire have filed a civil complaint against the Swiss bank for misleading investors who purchased principal protected notes and subsequently suffered massive losses once the underwriter, Lehman Brothers, went belly up.

"The safety of these products was exaggerated," Jeff Spill, deputy director of securities regulation for enforcement, said in the statement. "UBS presented these notes as simple, safe investments when in fact they are highly volatile and are subject to shifting market conditions."

You can just hear Mary Schapiro sharpening her blade.
UBS Sold Unsuitable Lehman Securities, New Hampshire Alleges [Bloomberg]


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!