Disclosure expected in N.H. probe of UBS

CONCORD, N.H. - New Hampshire securities regulators say they'll make a disclosure today in their investigation of UBS Securities LLC, which underwrites student loans in the state.

The investment-banking arm of UBS AG declined to comment ahead of today's scheduled press conference. But last week, its parent company agreed to pay $150 million in fines to states including New Hampshire and buy back nearly $19 billion in auction-rate securities that have ensnared thousands of customers and added to the chaos in the nation's credit markets.

The state's Bureau of Securities Regulation has separately been investigating UBS Securities' dealings with the New Hampshire Higher Education Loan Corporation separately. UBS Securities has long been the lender's financial adviser and underwriter.

Student-loan issuers and municipal agencies were major issuers of the controversial investments, whose rates were reset at frequent auctions, but they found themselves trapped after investment banks stopped supporting the auctions last winter.

The loan corporation serves about 6,200 students, mainly state residents, but also nonresidents who attend college in state. It funded about $184 million in federal loans and $67 million in private loans last year.