Tom Ajamie spoke with the New York Times about Swiss giant UBS’ internal investigation into the questionable lending practices of some of its top-producing brokers in Puerto Rico. Article excerpt:
Read the Full ArticleMost banks require investors who are given a credit line to sign a document saying they will not use it to buy securities. Instead, investors use margin loans, which are specifically governed by regulators and allow banks to more closely monitor what sort of risks their clients are taking on.
“When you add leverage on top of leverage, and then add more leverage, it usually doesn’t end well,” said Thomas R. Ajamie, a lawyer who frequently represents investors in financial cases.