UBS has suspended David Shulman, its U.S. fixed income unit head and global head of municipal securities, according to published reports.
The suspension comes as state and federal investigations have heated up their investigations into sales and marketing practices related to auction-rat securities by UBS and other Wall Street firms. Shulman ran the auction-rate securities business at UBS.
New York State Attorney General Andrew Cuomo sued UBS on Thursday, accusing it of committing a “multibillion-dollar fraud” by steering clients into auction-rate securities even after there were signs these markets were no longer as safe or liquid as cash.
A UBS spokeswoman confirmed the firm placed an employee on administrative leave last week. The suspension occurred in mid-July. She said the UBS would defend itself against any charges.
Shulman is cooperating fully with UBS as it works through these matters, spokesman Jonathan Gasthalter said.