UBS to Customers – Buyer Beware

From the WSJ: UBS Cutting Value Of Auction-Rate Securities In Brokerage Accounts

UBS is the first of what will surely be many large banks to pass losses on Auction Rate Securities on to their customers. Of course these are the same customers who were told that these investments were as liquid and as safe as cash.

The Money Quote:

“Some Clients Will Face Losses on Paper Of More Than 20%”

We’re all Charlie Brown now