UBS counsel resigns amid ARS strife

UBS AG's general counsel David Aufhauser has stepped down from his post, according to an internal memo.

UBS AG’s general counsel David Aufhauser has resigned, according to an internal memo.
Mr. Aufhauser, who is general counsel of UBS’ investment bank in the United States, will stay on in a consulting role through Sept, 30.
His departure comes in the midst of probes by New York and Texas regarding the bank’s role in the sale of auction rate securities.
A spokeswoman declined to say if Mr. Aufhauser’s resignation is related to ARS investigations.
Last Thursday, the Zurich, Switzerland-based bank agreed to pay Massachusetts $750,000 after the state sued UBS on behalf of municipalities affected by the sale of the auction rate securities, which are debt instruments whose interest rates are periodically reset through monthly auctions (InvestmentNews July 31).
“As we have said previously, after an internal review assisted by independent external counsel, UBS does not believe there was any unlawful conduct by any employee in this matter,” the bank said in a statement.
On an interim basis, Jim Odell and Mark Shelton will serve as co-general counsels in the Americas, and David Graham will act as general counsel of the investment bank, according to the internal memo.