Thursday, July 24, 2008

NY AG sues UBS for Securities Fraud

I have not seen the complaint yet, but according to the AP story, the complaint is similar to the one brought last month by the AG's office in Massachusetts.

The interesting part of this story is that the the NY AG - Andrew Cuomo is quoted as saying " UBS is not alone in this scheme." "We are looking at a number of other banks."

The AP is also reporting that investigators said they had identified several UBS employees who sold $21 million of their personal stakes in the market in the months leading up to its collapse, the lawsuit does not target individual executives. The story implies, but does not say, that the employees were selling their own auction rate securities, which if true, would be a severe blow to UBS.

The original UBS - Massachusetts post is here.

NY AG sues banking giant UBS for securities fraud:
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