UBS Can't Halt Calif. Arbitration Over $175M In ARS

Law360, New York (August 1, 2012, 2:02 PM EDT) -- UBS Financial Services Inc. must face a Financial Industry Regulatory Authority Inc. arbitration brought by Pasadena, Calif., over alleged losses on $175 million in auction-rate securities, a California federal judge ruled Tuesday, rejecting the bank's claim that the city was not its customer.

U.S. District Judge R. Gary Klausner denied the bank’s June 11 motion for a preliminary injunction seeking to halt FINRA arbitration by Pasadena, which issued the ARS in 2004 and 2006 to refinance its debt and raise capital for city improvement projects. Investor...
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