Over time, Puerto Rico has attracted ab muscles wealthy, whom come when it comes to postcard-perfect beaches together with vow of the tax-free life.
Many shelter their millions in regional municipal relationship funds, that have been hit difficult of belated whilst the area struggles having a poor economy, increasing rates of interest and outsize financial obligation lots. When it comes to Swiss banking giant UBS, which boasts so it manages cash for 50 % of the islandвЂ™s millionaires вЂ” roughly $10 billion вЂ” the downturn has established a headache that is particularly nasty.
The bankвЂ™s customers had piled into very bond that is leveraged run by UBS and were motivated by its agents to borrow a lot more cash to purchase those funds. In some instances, cash ended up being lent improperly, exacerbating losses that are current based on UBS workers in your community near the situation, whom talked regarding the condition which they never be called as a result of an organization policy against talking with the news headlines news.
Now, a true amount of UBS customers have already been obligated to liquidate billions of bucks in holdings in these funds to satisfy margin telephone telephone telephone calls. While the bank claims it offers started an investigation that is internal the financing methods of a few of its top-producing agents within the commonwealth.
A week ago, after inquiries through the nyc days, UBS place one broker on administrative leave after claims emerged that the adviser had motivated their customers buying securities on credit lines, breaking the bankвЂ™s policy.