German Bank Says UBS CDO Was Designed To Fail

Law360, New York (March 10, 2011, 8:17 PM EST) -- A German bank allegedly lost nearly $500 million because of UBS AG's scheme to stuff a collateralized debt obligation with low-quality debt so it could collect on swap agreements, an attorney for the bank told a New York appeals court Thursday.

UBS touted the credit default swap protections it arranged for the securities, much as a landlord might buy fire insurance on a building, HSH Nordbank AG attorney, Philippe Z. Selendy of Quinn Emanuel Urquhart & Sullivan LLP, told a five-judge panel of the Supreme Court...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.