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UBS is the second big banking institution to settle accusations of bid-rigging in the municipal bond derivatives market.
In May of this year, UBS agreed to pay $160 million and admitted that its employees had conspired to rig bids in the municipal bond derivatives market.
Gov. Phil Bredesen of Tennessee said on Thursday that state officials had failed to do enough to protect cities and counties that had used sophisticated municipal bond derivatives, which have crashed and caused interest payments for some cities to quadruple.
In 2001, Merrill's new leader at the time, E. Stanley O'Neal, plucked him from his job as a bond derivatives expert and put him in charge of the firm's bond business.
Experts in municipal bonds have said that bond derivatives are inappropriate for small towns and rural counties, and that higher fees associated with the derivatives often eclipsed any savings the transactions had provided.
WASHINGTON — The Swiss bank UBS agreed to pay $160 million in fines and restitution because former employees conspired to rig bids in the municipal bond derivatives market, federal and state officials announced on Wednesday.
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Indeed, a tax of just 0.05 percent levied on each stock, bond, derivative or currency transaction would be aimed at financial institutions' casino-style trading, which helped precipitate the economic crisis.
Behind the Numbers Our rankings are from the MasterCard Worldwide Emerging Markets Index, which ranks 65 cities in 30 emerging markets on the basis of eight criteria: business environment; economic growth; economic environment, which assesses credit markets and investor protection; and the financial services environment, measuring the size of equity, bond, derivative and commodities trading.
THIS time last month, darkness was descending on the maze of bonds, derivatives and structured finance in the credit markets.
His main challenge lies in the firm's fixed-income division, where traders deal in bonds, derivatives, currencies and commodities.
The measure will probably include taxes on the purchase of stocks and bonds; derivatives will probably be taxed at a lower rate.
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