UBS bank admits cheating U.S. municipalities out of millions

Citigroup Inc. (C) hired UBS AG (UBSN)’s Kevin Cox, a top adviser to industrial companies and former head of the Swiss firm’s investment-banking unit for the Americas.

Cox will become co-chairman of global industrials investment banking, New York-based Citigroup said today in an e- mailed statement. He will be based in New York and report to Raymond J. McGuire, head of global banking, according to the statement.

“Kevin is a highly experienced trusted adviser to leading industrial companies around the world,” McGuire said in the statement. “He is a significant addition to our global banking team.”

UBS’s investment-banking unit for the Americas has been undergoing management changes and losing bankers after the Zurich-based company cut its bonus pool by 80 percent in 2008 because of the financial crisis. Those who have left for other firms since 2009 include the chairman of investment banking, Richard Leaman, and the heads of investment banking for health- care, energy, and technology, media and telecommunications.

Citigroup: UBS Slaps it with a ‘Buy’

UBS is initiating coverage on a host of financial stocks today, including Citigroup, which it slapped with a “buy” sticker. Here’s the short version, from analyst William Tanona:

'Despite all of its troubles during the financial crisis, Citi’s brand is still its biggest asset, especially outside of the United States. We believe the firm will leverage this strength to capitalize on strong demographic and economic trends that exists globally. Despite these opportunities, Citi still has a number of major challenges that it faces and is working through; however, the firm is in a healthier financial position today to deal with them, which gives us greater comfort. Citi’s results will be more volatile than peers, which will require greater patience and a longer-term view to reap the benefits of this franchise.'

Quick rundown on Citi. The stock still can’t get over the five-dollar barrier. Year-to-date, Citi is down a bit more than 4%. As for analyst “community,” they’re mixed on their view for the shares. About 52% of the 27 ratings tracked by FactSet are “buys’ or “overweights,” leaving 48% with hold/neutrals or sell/underweights. And what of the oft-longed for Citigroup dividend? There’s always next year. “Shareholders will likely have to wait until next year before they see higher dividends and/or share repurchases,” Tanona writes.