UBS Denies It Tanked MBS To Cause $331M In Losses

Law360, New York (February 22, 2013, 3:46 PM EST) -- Investment vehicles backed by a German bank can't blame UBS AG for $331 million in subprime mortgage-backed securities losses because the Swiss bank had no reason to make the securities fail, UBS told a New York state judge Friday.

A group of special purpose investment vehicles backed by IKB Deutsche Industriebank AG have alleged that UBS set up complicated collateralized debt obligations whose collateral was supposed to be chosen by Manulife Asset Management affiliate Declaration Management & Research LLC.

But UBS and Declaration Management shirked their...
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