![]() Sutton's letter said, "Any financial advisor who sends an e-mail in the middle of the night to dozens of Firm clients urging them to take an action contrary to research recommendation, without informing the clients of that recommendation or obtaining the necessary review and approval would be treated the same as Mr. ![]() UBS PaineWebber brokers, the firm said, were not allowed to e-mail 10 or more clients with stock analyses without the permission of their supervisors or without informing clients of the firm's rating of the stocks. Later that day, Mendenhall e-mailed Wu's clients rebutting his advice. Joyce expressed her extreme displeasure that the e-mail had been sent to dozens of Enron employees, requested that the Firm address the situation promptly, and in words or tone expressed her view that strong disciplinary action be taken."Īt the time, UBS PaineWebber was recommending Enron as a "strong buy." Enron stock was trading at about $36 a share, less than half of its peak price earlier in the year. Wu's e-mail to the Firm's attention," Sutton said in his response. "Mary Joyce and Aaron Brown, the Enron personnel responsible for administering Enron's stock option plan, contacted PaineWebber on Aug. "Please handle this situation," reads an e-mail - attached to the letter - from Enron's Aaron Brown to Patrick Mendenhall, the branch manager of the Houston UBS PaineWebber office. Waxman (D-Calif.).Įnron officials who had seen Wu's e-mails wrote to his superiors. Sutton wrote in a letter answering questions from Rep. 21, telling them that he felt Enron was in financial trouble and that they should consider selling some of their stock, UBS PaineWebber's Mark B. UBS PaineWebber broker Chung Wu was dismissed for violating company policy by e-mailing 73 clients shortly after midnight last Aug. officials complained that he had warned customers to sell Enron stock, according to the brokerage firm's account of the incident. UBS chief executive Marcel Ospel said UBS’ international reach and product range will mix well with PaineWebber’s leading positionin the United States for affluent customers.HOUSTON - UBS PaineWebber's firing of a broker last summer came after Enron Corp. investors are seen likely to favor ashare-for-share exchange, which is not taxable as a cash offerwould be. Under the transaction, PaineWebber shareholders can accepteither 0.4954 UBS shares per PaineWebber share or $73.50 incash, but UBS said it would ultimately pay half in cash, half inshares for the U.S. in 1998, manages more than $1 trillion in clientassets and employs 49,000 people around the world. ![]() UBS, created from the merger of Union Bank of Switzerland andSwiss Bank Corp. Together,they control about 30 percent of PaineWebber’s shares. andYasuda Mutual Life, have agreed to vote for the deal. PaineWebber’s two largest shareholders, General Electric Co. Marron, chairman and chief executive of PaineWebber,had long resisted selling the company, but said in a statement today: “This is the right merger, with the right partner, atthe right time.” The companies hope to complete the deal in November, pendingshareholder and regulatory approval.ĭonald B. The proposed deal extends the recent global consolidation that isreshaping the banking, insurance and securities industries. in a cash and stock deal valuing the U.S.broker at $10.8 billion. Z U R I C H, July 12 - Ina move that would give Switzerland’s biggest bank access tomillions of wealthy American investors, UBS AG said it will buyPaineWebber Group Inc.
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