UBS Short-Selling Claims Draw $12M FINRA Fine

Law360, New York (October 25, 2011, 1:28 PM EDT) -- UBS AG on Tuesday agreed to pay $12 million to settle Financial Industry Regulatory Authority allegations that its U.S. brokerage unit placed tens of millions of short-sale orders without knowing whether it could find the securities to borrow.

FINRA said UBS Securities LLC's supervisory system for overseeing short sales was significantly flawed. From January 2005 to the end of 2010, the Swiss investment bank's U.S. brokerage failed to guarantee that they could borrow the stocks necessary to complete a short sale before marking down the trade...
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