Report: UBS fixed-income chief suspended
U.S. fixed-income chief, David Shulman, has been suspended, according to The Wall Street Journal.
As state investigations accelerate over UBS AG’s role in the sale and marketing of auction rate securities, the bank has suspended its U.S. fixed-income chief, David Shulman, according to The Wall Street Journal.
When contacted, a UBS spokeswoman said that an employee had been placed on administrative leave last week, but she declined to confirm that it was him or the reason for suspending the employee.
To date, the Zurich, Switzerland-based company has been hit by civil lawsuits alleging fraud filed by Massachusetts, New York and Texas on behalf of those invested in its ARS when the market collapsed(InvestmentNews July 24).
The Massachusetts case, filed Saturday by Secretary of State William Galvin, cited Mr. Shulman as facilitating the sales of ARS, which are designed as long-term investments whose rates are reset periodically in weekly or monthly auctions.
Mr. Shulman’s spokesman, Jonathan Gasthalter, couldn’t be reached for comment.
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