UBS has became the first European bank to be sued by an investor over the sale of financial products that collapsed as a result of the meltdown in sub-prime mortgages in the United States. Financial Times, the Times, The Independent
HSH Nordbank, one of Germany’s biggest banks, is suing the largest Swiss bank over $500m (£254m) of collateralised debt obligations in what lawyers said was likely to be the first of many such cases in Europe.
HSH is looking to sue for losses of more than $200m, sources said. The legal action is likely to bring further embarrassment to Marcel Ospel, the UBS chairman, who is under intense pressure after revealing $18.4bn in writedowns in the wake of the global financial crisis.