Puerto Rican Arbitration Claims Climbing
From Ring of Fire:
The fallout of holding concentrated Puerto Rican bond investments is becoming widely known across the small Caribbean island. Investors are lining up to bring UBS Puerto Rico to task because of the poor advice following the mark down by Standard & Poor’s (S&P) and Moody’s to speculative or “junk” status earlier this month,
“As the effects of Puerto Rico’s recent downgrade become more widely known, investors will come to realize the extent of their exposure,” commented Peter Mougey, a partner with the Levin, Papantonio law firm and director of the firm’s Securities & Business Litigation department. “Recommending UBS Puerto Rico’s close-ended bonds and municipal bonds in large concentrations does not adhere to industry standards or FINRA Regulations,” says Mougey.
Losses from the Puerto Rican bond flop are estimated to be in the billions of dollars so far. Concerns mounted considerably over the past few years as the island territory’s government faces trouble meeting its debt obligations. Recently-elected officials have had to enact pension reforms and tax increases in an attempt to combat potentially not paying the territory’s bills.
You can read the full article here at Ring of Fire.