HSH Nordbank has filed a suit against UBS claiming significant losses on a $500 million investment in a subprime mortgage-linked synthetic collateralised debt obligation (CDO) sold to the German bank in 2002.
In its filing with a New York court on February 25, HSH Nordbank alleges the Swiss bank saw the CDO as an opportunity to defraud it. In a statement, UBS denies all the allegations and says it will defend itself vigorously. "We discussed and negotiated the transaction over a period of several
The week on Risk.net, July 7-13, 2018Receive this by email