UBS Can't Duck FINRA Arbitration Over $125M ARS

Law360, New York (February 12, 2013, 4:37 PM EST) -- UBS Securities LLC must arbitrate claims by a Minnesota hospital chain over $125 million in soured auction-rate securities, a federal judge ruled Monday, dealing another setback to banks seeking to escape the Financial Industry Regulatory Authority’s jurisdiction.

Under FINRA rules, Allina Health System is a “customer” of UBS, which helped underwrite an October 2007 ARS transaction that went south in the run-up to the financial crisis, U.S. District Judge Michael J. Davis said. Allina launched a FINRA arbitration in February 2012, prompting UBS to sue the...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.