We broke a story back in October of 2001 about a broker named Chung Wu, formerly of the Houston office of UBS PaineWebber.
Mr. Wu was fired after doing the right thing. His so-called crime was sending e-mails to clients suggesting that they liquidate their holdings in Enron before losing their proverbial shirts. Mr. Wu is now fighting back, going after UBS Paine Webber in a suit seeking $2.7 million. Mr. Wu sent e-mails to UBS clients suggesting they take their money out of Enron. Once an Enron executive caught wind that a UBS broker dared to sell Enron stock for anyone except Enron executives, it was all over for Mr. Wu. The Enron executive alerted the branch manager of UBS and Wu was fired. The remaining brokers at UBS were ordered to get on the phone and retract everything that Mr. Wu forewarned.
This story has gotten as far as Congress. Congressmen Henry Waxman asked UBS Paine Webber whether it is firm policy to terminate an employee who recommends a client to sell. The pathetic legalese response from UBS was because Wu sent out an e-mail, it constituted a sell rating, which brokers are not allowed to issue.
God forbid an honest report! A sell! He should be burned at the stake!
The arrogance of the big banks never ceases to amaze.