German Bank To Sue UBS Over Subprime Investments
- Feb 25, 2008
Hamburg–HSH Nordbank–one of Germany’s biggest financial institutions–will sue Swiss bank UBS for selling it millions of dollars of subprime mortgage-related investments, BBC News reports.HSH Nordbank, a state-owned bank with offices in Hamburg and Kiel, is alleging that UBS didn’t manage its assets prudently enough and hopes to recover losses from a $500 million (£253 million) portfolio purchased in 2002. According to BBC News. if the lawsuit is successful, it could spark a wave of filings from banks and investors who feel they were misled about the security level of Collateralized Debt Obligations (CDOs).HSH Nordbank will file suit in the state of New York by the end of February, BBC News said. UBS declined to comment.