UBS AG, Europe's largest bank by assets, was sued by the German state-owned bank HSH Nordbank AG seeking to recover losses on a $500 million portfolio linked to the U.S. subprime mortgage market.
HSH Nordbank, in a complaint filed yesterday in state court in New York, said it bought North Street 2002-4, a portfolio of collateralized debt obligations tied to the U.S. mortgage market, in 2002. Zurich-based UBS violated ``contractual obligations and fiduciary duties'' by changing the portfolio in ways ``solely for the benefit of UBS,'' the Hamburg-based bank said in a statement.
``UBS exploited the structure for its own ends, at HSH's expense, in violation of its contractual and fiduciary duties,'' the bank said in the complaint.
``UBS knowingly and deliberately created a compromised structure,'' HSH Nordbank said in the complaint. ``Indeed, within just one year, under the guise of shifting to real estate investments, UBS more than doubled the profit it extracted at the expense of HSH, to a staggering $275 million.''
Read Complete Story
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment