One Year Ago In Derivatives Week

Law firm Zamansky Associates planned to bring Financial Industry Regulatory Authority arbitration cases against UBS for selling structured notes backed by Lehman Brothers to investors. [Zamanky's cases have not been heard yet, nor have any others, lawyers say. But Christopher Vernon of Naples, Fla., law firm Vernon Healy has brought a similar case that will be heard on Dec. 14, perhaps setting a precedent. "I think these notes were sold to a lot of investors who thought they were buying a conservative product," Vernon said. According to Vernon, many investors had up to half of their portfolio in structured notes, creating unsuitable credit exposure. "If [a financial advisor] were to put together a bond portfolio heavily concentrated in the financial sector, compliance would say, 'What the heck are you doing?'"]