We've noted often that prosecution and regulatory activities follow scandal. The New York Times highlights an area that many have identified as rife with conflicts: the auction rate securities market. MA regulators have released emails from UBS executives that make clear that bank conflicts--they serve as underwriters and auction managers--are deep. As the market creaked and institutional buyers disappeared, UBS became desperate to keep these securities off its books. They ended up foisting them on retail customers, marketing them as safe cash-equivalents. Some brokers complained about the possible damage to client relationships over something as simple as cash. One issue here is the extent to which other top banks did the same.  

For more:
- here's the New York Times article

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