UBS and two ex-employees were hit with $32 million in penalties and sanctions by regulators on Tuesday for selling Puerto Rico’s toxic debt to unsuspecting investors before the US commonwealth went bankrupt. The bank’s Puerto Rico unit and ex-supervisor Ramiro Colon turned a blind eye to broker Jose Ramirez, who sold $50 million in bonds and lied about the risk, according to a settlement between UBS and the SEC. [NYP]
Puerto Rico Not Picky, Will Take Felipe, Esteban, Carlos, Or Guillermo If Juan Paulson Won't Make The Move
Earlier this month, Bloomberg reported that John Paulson was considering making Puerto Rico his home for a little more than half the year, having been intrigued by the idea of working from the beach and not having to pay capital gains taxes. For its part, PR was pretty excited about the prospect of the hedge fund manager calling the island home on tax forms, as his presence would create a much needed you scratch our back we'll scratch yours situation for the local economy. And while a spokesperson for Paulson has categorically crushed the dreams of the Commonwealth, apparently everyone has gotten over it pretty quickly and would like to make it clear that anyone with money to spend is welcome, nay, encouraged to come on down. Millionaires would be good, billionaires are better but beggars/choosers/etc.