{"id":5410,"date":"2013-01-31T00:00:00","date_gmt":"2013-01-31T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2013\/01\/ubs_citi_do_have_to_arbitrate"},"modified":"2022-05-02T15:39:05","modified_gmt":"2022-05-02T20:39:05","slug":"ubs-citi-do-have-to-arbitrate","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/ubs-citi-do-have-to-arbitrate\/","title":{"rendered":"UBS & Citi Do Have to Arbitrate Auction-Rate Securities Case Filed by Health Care Nonprofit Carilion Clinic"},"content":{"rendered":"

According to the U.S. Court of Appeals for the Fourth Circuit, a district court was right when it decided not to stop Carilion Clinic\u2019s arbitration proceeding against Citigroup Global Markets (C) <\/a>and UBS Financial Services (UBS)<\/a> for an ARS issuance that proved unsuccessful. The financial firms had served the healthcare nonprofit in a number of capacities, including providing underwriting services.<\/p>\n

Carilion had retained UBS and Citi in 2005 to raise over $308M so that it could redo its medical facilities. They are accused of recommending that Carilion put out over $72M of bonds in the form of variable demand rate obligations and $234 million in ARS.<\/p>\n

When the auction-rate securities market took a huge dive in February 2008, Citi and UBS ended their policy of supporting the market and the auctions started to fail. As a result, result, Carilion allegedly was forced to refinance what it owed to avoid higher interest rates and it sustained losses in the millions of dollars. The nonprofit later began auction-rate securities arbitration proceedings with FINRA against both firms.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

According to the U.S. Court of Appeals for the Fourth Circuit, a district court was right when it decided not to stop Carilion Clinic\u2019s arbitration proceeding against Citigroup Global Markets (C) and UBS Financial Services (UBS) for an ARS issuance that proved unsuccessful. The financial firms had served the healthcare nonprofit in a number of […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3820,3752,3755],"tags":[],"class_list":["post-5410","post","type-post","status-publish","format-standard","hentry","category-citigroup","category-financial-firms","category-ubs"],"yoast_head":"\nUBS & Citi Do Have to Arbitrate Auction-Rate Securities Case Filed by Health Care Nonprofit Carilion Clinic — Investor Lawyers Blog — January 31, 2013<\/title>\n<meta name=\"description\" content=\"According to the U.S. Court of Appeals for the Fourth Circuit, a district court was right when it decided not to stop Carilion Clinic\u2019s arbitration — January 31, 2013\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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