Wednesday, August 8, 2007

Gee, UBS Sued Again for Not Compensating Brokers

What is with this firm? InvestmentNews is reporting that a class action has been filed against UBS for undercompensating its brokers alleging that brokers were not paid the full 25 basis points a year on each $25,000 auction rate security purchased by the brokers' customers between 1993 and 2005.

The article calls the failure a computer error, but if the years are right, this went on for TWELVE YEARS!!!!

Never, in 25 years of practicing securities law have I seen a firm be accused so many times of stiffing its own brokers in so many different ways.

If you think UBS beat you on your compensation, you are probably not paranoid.
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