UBS To Pay $11M Over Lehman-Issued Note Losses

Law360, New York (April 11, 2011, 4:04 PM EDT) -- The Financial Industry Regulatory Authority announced Monday that it had fined UBS Financial Services Inc. $2.5 million and ordered the company to pay $8.25 million in restitution for misleading investors regarding the sale of notes issued by bankrupt Lehman Brothers Holdings Inc.

From March to June 2008, while the credit crisis was worsening, financial advisers at the UBS AG subsidiary failed to emphasize to clients that the Lehman-structured 100 percent principal protection notes being offered were unsecured and subject to issuer credit risk.

PPNs are fixed-income...
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