Texas weighs suspending UBS due auction rate snarl

NEW YORK, July 23 (Reuters) - Texas is considering at least partly suspending UBS AG (UBSN.VX) from acting as a securities dealer in the state until Texans who invested in auction rate paper get their money back, the state securities board said in a notice filed late Tuesday.

UBS in a statement on Wednesday said "The firm believes this requested relief is unwarranted, and we will defend ourselves vigorously." The bank added it continued to do business "as usual" in Texas and was cooperating with the state. (Reporting by Joan Gralla; Editing by James Dalgleish)