Wells Fargo CDO Goofs Cost Investors $160M, Suit Claims

Law360, New York (January 24, 2013, 3:23 PM EST) -- A German public agency responsible for winding up the assets of dissolved bank WestLB AG sued Wells Fargo Bank NA in New York federal court Wednesday, claiming the bank's mismanagement of a WestLB collaterized-debt obligations vehicle led to more than $160 million in losses.

Erste Abwicklungsanstalt, also known as EAA, claims Wells Fargo breached its contractual obligations as trustee and collateral administrator of House of Europe Funding I Ltd., an investment vehicle formed by WestLB in 2003 that issued CDOs, by allowing the vehicle to invest...
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