UBS Fined Over Risky Puerto Rican Bonds

The Financial Industry Regulatory Authority (FINRA) fined UBS for infractions related to risky Puerto Rican debt, an issue that exploded by orders of magnitude when the island’s debt became unsustainable. UBS clients loaded up with risky Puerto Rican bonds, face margin calls when credit collapses UBS AG’s Puerto Rican unit was fined $7.5 million and ordered compensate its clients to the tune of $11 million for allowing investors to borrow against risk-laden Puerto Rican bonds. In August 2013 when the closed-end funds experienced a significant market sell-off, UBS customers experienced significant losses to meet the bank’s margin calls, a MarketWatch…