UBS Drops $50M To Settle SEC's Misleading CDO Claim

Law360, New York (August 6, 2013, 3:23 PM EDT) -- UBS AG will pay $50 million to settle accusations that it misled investors by marketing a collateralized debt obligation without disclosing that it retained millions of dollars in upfront cash it received in the course of acquiring collateral for the CDO, the U.S. Securities and Exchange Commission said Tuesday.

The SEC claims that UBS took in $23.6 million in upfront payments in the process of obtaining credit default swaps as collateral, but rather than transfer the cash to the CDO when the collateral was transferred, UBS...
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