By Katherine Griffiths, Financial Services Editor
Last Updated: 1:34am GMT 27/02/2008
UBS has been accused of defrauding a client which invested in a portfolio of collateralised debt obligations.
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HSH Nordbank, the German sector public lender, yesterday filed a writ against UBS in New York after saying at the beginning of the week it would sue. It hopes to win millions of dollars in damages from the Swiss banking giant.
HSH said it suffered losses on a $500m (£250m) portfolio of collateralised debt obligations linked to the US residential mortgage market. The portfolio was called North Street 2002-04 and the CDOs were structured, sold and managed by UBS.