Commercial loans including Multifamily programs have all been hurt by mismanaged bond investments. In that vein, we welcomed this news this afternoon.
Huge settlement announced today by NY State AG. UBS to buy back over $19 BILLION dollars worth of bonds sold to many investors including pensions, towns and cities. This is just the tip of another investment debacle as other investment banks and Wall Street firms are presently negotiating their buy back deals. UBS was fined $150M dollars as well.
These bonds were sold as low risk and extremely liquid. Somehow the Federal regulators missed this market entirely as well. The buy back is a result of the firms knowing this bond sector was failing and still being aggressively sold to investors. All sectors of the bond market were affected by seemingly low risk packaged investments which ultimately failed.
One large spanking for the big boys and done very quietly behind the shed.
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