UBS Hit With Suit Over $2B Subprime Asset Scheme

Law360, New York (June 18, 2009, 12:00 AM EDT) -- UBS AG has been hit with a suit by California’s fifth-largest bank, which alleges the financial giant tried to secretly offload its exposure to over $2 billion in toxic subprime mortgage assets to a group of unsuspecting financial institutions.

In a 27-page complaint filed Thursday in the Superior Court of the State of California, San Francisco County, Bank of the West sued UBS for fraudulently inducing financial institutions to pony up hundreds of millions of dollars to unwittingly insure UBS against its own subprime investments losses....
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