UBS Faces Charges in Auction-Rate Securities Mess

July 24, 2008 9:27:59 AM PDT
Banking giant UBS faces securities-fraud charges in New York over its conduct in the auction-rate securities market. New York Attorney General Andrew Cuomo announced Thursday that he has sued the bank for misleading investors about the potential risks of the securities.

For years, banks including UBS promoted these types of investments as being exceptionally safe and liquid.

But some buyers were left holding the bag when the $330 billion market collapsed last winter due to turmoil in the credit markets.

UBS already faces similar charges in Massachusetts.