China considers same tax rate for domestic, overseas firms (AFP)
AFP - Chinese lawmakers have mulled a draft law that would impose a 25 percent income tax on both domestic and foreign firms, eliminating the preferential rate for overseas companies, according to state media.
New York sues UBS, alleges auction-rate fraud (Reuters)
2008.07.259 minutes ago
NEW YORK (Reuters) - New York Attorney General Andrew Cuomo filed a civil lawsuit on Thursday against UBS AG (UBSN.VX), accusing the Swiss bank of deceptively steering customers into auction-rate securities that this year became impossible to cash out of amid the credit crunch.
The suit, filed in New York state court, accuses UBS of deceptively selling auction-rate securities to customers as cash equivalents.
UBS said in a statement it would "vigorously defend" itself against the charges brought by Cuomo.
"It is frustrating that the New York Attorney General has filed this complaint while we have been fully engaged in good faith negotiations with his office to bring liquidity to our clients holding auction rate securities," the Swiss bank said.
It said it will "vigorously defend ourselves against this complaint."
Cuomo also accused several senior UBS executives of wrongdoing, saying subpoenaed e-mails detail how they dumped $21 million in personal holdings as the auction-rate market collapsed while still pushing securities to customers.
"UBS also continued the fraud after they knew the fraud was revealed for what it was," Cuomo said at a news conference. "After the auctions were failing they continued to sell the auction-rate securities."
He said "UBS is not alone in this scheme, there are other institutions which participated, but UBS is a major player."
The lawsuit is expected to be the first in a series of cases to arise from the state's investigation into Wall Street's handling of the $330 billion auction-rate securities market.
The short-term investments, long touted as being as liquid as cash, lost their value after brokers stopped supporting the market in late January.
(Reporting by Joseph A. Giannone; writing by Martha Graybow; editing by Jeffrey Benkoe, Phil Berlowitz)
Top News
More articles on this topic:
China says to continue stable monetary policy (Reuters)
Reuters - China's central bank said on Monday that it would continue to take steps to keep investment and credit growth in check, while pressing ahead with efforts to make the value of its currency more market-driven.
Reuters - China's central bank said on Monday that it would continue to take steps to keep investment and credit growth in check, while pressing ahead with efforts to make the value of its currency more market-driven.
Economic growth concerns drag down indexes (Reuters)
Reuters - U.S. stocks dropped on Friday as concerns about slowing economic growth persisted, causing investors to sell shares of bellwether companies such as plane maker Boeing Co. and leaving all three major indexes in the red for the week.
Reuters - U.S. stocks dropped on Friday as concerns about slowing economic growth persisted, causing investors to sell shares of bellwether companies such as plane maker Boeing Co. and leaving all three major indexes in the red for the week.
Russia tax office files suit vs PWC on YUKOS audit (Reuters)
Reuters - Russian tax authorities have filed a suit against the local branch of PricewaterhouseCoopers (PwC) accusing it of producing a false audit for fallen oil company YUKOS, the auditor said on Monday.
Reuters - Russian tax authorities have filed a suit against the local branch of PricewaterhouseCoopers (PwC) accusing it of producing a false audit for fallen oil company YUKOS, the auditor said on Monday.
Japan keeps view that economy is recovering (Reuters)
Reuters - The Japanese government kept its assessment of the economy unchanged in a monthly report on Monday, after downgrading it for the first time in almost two years last month.
Reuters - The Japanese government kept its assessment of the economy unchanged in a monthly report on Monday, after downgrading it for the first time in almost two years last month.
