UBS Sorry About Using The Words "Crap" "Vomit" And "Kewl" Re: Notes It Sold To Hedge Fund Client

Traders at the Swiss bank (presumably!) won't make that mistake again.

Actually, it's not clear anyone there is sorry about the use of the word "kewl," but they should be.

Investment bank UBS has settled with a a hedge fund that accused it of selling securities it knew were on the precipice of a downfall with hours to go before a potentially damaging trial for the bank was set to begin. A source confirmed to Business Insider that UBS settled with Pursuit Partners, a Connecticut hedge fund, but declined to provide specifics...“UBS knew, at least as early as July 2007, based upon private communications by and between UBS and Moody’s, that Moody’s no longer believed that CDO notes of the type that UBS later sold to Pursuit deserved an “investment grade” rating,” the suit alleges. But the suit also cites emails between UBS staffers that really drive the point home. “Kewl,” wrote UBS trader Evan Malik to Hugh Corcoran in an August 2007 email that began with the bankers talking over company email about wine purchases. “Sold some more crap to pursuit.” In another email, UBS employee Tim Goodell said to Jared Menzel that the securities were “vomit;” this was in September 2007.

UBS just settled with a hedge fund over deals its staff called "crap" and "vomit" [BI]


Hiring Watch '12: UBS

The Swiss bank is making its would-be junior mistmakers wait for it. "UBS is delaying return offers to summer analysts from August 10th to mid-September, probably to assess how severe layoffs will be."