Securities News Releases

Wednesday, June 30, 2010
Contact: Laura Egerdal, (573) 526-0949
Contact: Abe Rakov, (573) 526-4734

Carnahan Announces Additional $40 Million Available for UBS Auction Rate Securities Investors

Jefferson City, MO – Secretary of State Robin Carnahan today announced that an additional $40 million is available for investors nationwide currently holding auction rate securities purchased through UBS. Although UBS returned $370 million to Missourians in 2008, that buyback did not include investors who purchased auction rate securities through UBS but then moved to another firm.

For more information, investors can contact the Secretary of State’s Securities Division at 1-800-721-7996 or UBS at 1-800-253-1974. Investors now eligible for repayment purchased auction rate securities through UBS prior to October 1, 2007 but then left UBS before February 13, 2008.  The $40 million available for repurchase is part of a $200 million fund established this year to supplement the original 2008 buyback. 

“My office is committed to doing everything possible to make investors whole,” Carnahan said. “When the first buyback left some investors holding the bag, we went back to the table to ensure these investors will finally get the relief they deserve.”

The agreement reached with UBS Securities, LLC and UBS Financial Services Inc. requires UBS to offer to repurchase auction rate securities held by Missouri individual and small business clients, and requires UBS to make a payment of $1.2 million to the Missouri Investor Education and Protection Fund as part of this national, global settlement.

Auction rate securities were often sold as “liquid” or “same as cash” investments, but many investors learned they were actually holding long-term bonds after the $330 billion market collapsed in February 2008.  The UBS agreement is the 14th resolution reached by Carnahan and her staff in auction rate securities cases, which have returned more than $1.5 billion to Missourians.

For more information regarding investments and fraud protection, visit the Secretary of State's online Missouri Investor Protection Center at www.MissouriSafeSavings.com or call the toll free Investor Protection Hotline at 1-800-721-7996.

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To find out more about Missouri's Secretary of State's office, visit www.sos.mo.gov

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