UBS Financial Services Broker Misconduct

UBS is one of the world’s largest financial firms, based in Switzerland. According to its Web site, it employs more than 23,000 people in the United States including 34 offices in California. UBS also has offices in 50 countries around the world, placing them in financial sectors worldwide.

Their influence led to them being the leading broker of auction-rate securities in the country, up until the market for these securities crashed in early-2008. Like other major investment banks, UBS inappropriately marketed auction-rate securities as being safe as cash, and then refused to buy-back the securities when the auctions for those securities began failing.

In a 2008 settlement with the SEC, UBS has agreed to repurchase $22.7 billion worth of auction-rate securities that had been sold to small investors. The SEC, who in addition fined UBS $150 million, said the settlement was the largest in the agency’s history.

FURTHER READING

• UBS Auction-rate Settlement: It’s Official 
• SEC Finalizes ARS Settlements With Citigroup And UBS, Providing Nearly $30 Billion in Liquidity to Investors