UBS confronting the investigation by Sandra Stoklaskova

The Wall Street Journal said on Saturday, that U.S. government prosecutors are investigating UBS Bank. Swiss Banking giant is facing the accusation of reporting inflated prices of mortgage-backed securities. They held it in spite of knowing those valuations had eroded. The Journal also said, that U.S.Attorney for the Eastern District of New York had not yet lay out summon for this investigation. Unnamed sources added, that prosecutors from New York are cooperating hand in hand with the U.S. Securities and Exchange Commision. UBS and also Merrill Lynch and Co Inc are examinated by SEC due to pricing of mortgage securities. And as it use to be, both the UBS and Merrill Lynch spokesman was not yet prepared to comment this situation. Economic markets across the Globe was hitted last week, because of credit crisis and UBS is not clause, for sure. They increased their subprime writedowns to $18.4 billion, after this bad situation on global markets. "We are looking into whether fraud occurred in the packaging and selling of complicated mortgage securities like collateralized debt oblibations," said U.S.Justice Departmnet, according to the Journal. Merrill Lynch and Co Inc is going to be invastigated because of suspicion of selling unsuitable mortgage related securities to Springfield city. Las year Merrill invested approximately 14 million american dollars. Without the allowance from the Springfield, he used their money only to see most of the value erased. Representatives of this city said: "Merrill had agreed to pay back $13.9 million." UBS remains still under investigation.

related story: http://news.yahoo.com/s/nm/20080202/bs_nm/ubs_investigations_dc;_ylt=AtWe.RhmHPqnu6t9NcrzQ2Ws0NUE

by Sandra Stoklaskova for PocketNews (http://pocketnews.tv)

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