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| HSH Nordbank to Pursue Legal Proceedings Against UBS |
HAMBURG and KIEL, Germany, February 24 /PRNewswire/ -- HSH Nordbank announces that it has decided to start legal proceedings against UBS to
recover significant losses incurred on a US$ 500 million portfolio of CDOs
(collateralised debt obligations) linked to the US mortgage market which
were structured and sold by UBS. The investments were sold by UBS in 2002 to Landesbank Schleswig-Holstein which subsequently merged with
Hamburgische Landesbank to become HSH Nordbank AG. HSH Nordbank has only taken this action after careful consideration and on legal advice. It
expects to file its claim against UBS in the State of New York by the end
of February.
HSH Nordbank's claims relate to CDOs known as "North Street 2002-4".
UBS arranged the CDO and manages the portfolio of assets held by North
Street 2002-4 on a discretionary basis. HSH Nordbank will claim that UBS's
management of the portfolio has been in breach of its contractual
obligations and fiduciary duties and that substitutions were made solely
for the benefit of UBS.
Bernhard Blohm of HSH Nordbank commented:
"Our investment in the North Street program was to be conservatively
managed by UBS according to prudent investment objectives. Our claims
against UBS will show that the manner in which the investments were sold to HSH Nordbank and UBS's subsequent management of the assets were clearly contrary to our interests.
We came to the realization that the world's largest asset manager, UBS, appears to have condoned actions which benefited only itself, at the
expense of its clients. After repeated attempts to discuss our concerns
with senior management at UBS, we find that, with regret, we have no
alternative but to commence legal proceedings against UBS. HSH Nordbank is committed to the prudent management of its capital and to the recovery of its losses which we regard as the responsibility of UBS."
Further information: http://www.hsh-nordbank.com
About HSH Nordbank
HSH Nordbank AG is one of Germany's major financial institutions with
assets of EUR 207 Billion as of 30 September 2007
recover significant losses incurred on a US$ 500 million portfolio of CDOs
(collateralised debt obligations) linked to the US mortgage market which
were structured and sold by UBS. The investments were sold by UBS in 2002 to Landesbank Schleswig-Holstein which subsequently merged with
Hamburgische Landesbank to become HSH Nordbank AG. HSH Nordbank has only taken this action after careful consideration and on legal advice. It
expects to file its claim against UBS in the State of New York by the end
of February.
HSH Nordbank's claims relate to CDOs known as "North Street 2002-4".
UBS arranged the CDO and manages the portfolio of assets held by North
Street 2002-4 on a discretionary basis. HSH Nordbank will claim that UBS's
management of the portfolio has been in breach of its contractual
obligations and fiduciary duties and that substitutions were made solely
for the benefit of UBS.
Bernhard Blohm of HSH Nordbank commented:
"Our investment in the North Street program was to be conservatively
managed by UBS according to prudent investment objectives. Our claims
against UBS will show that the manner in which the investments were sold to HSH Nordbank and UBS's subsequent management of the assets were clearly contrary to our interests.
We came to the realization that the world's largest asset manager, UBS, appears to have condoned actions which benefited only itself, at the
expense of its clients. After repeated attempts to discuss our concerns
with senior management at UBS, we find that, with regret, we have no
alternative but to commence legal proceedings against UBS. HSH Nordbank is committed to the prudent management of its capital and to the recovery of its losses which we regard as the responsibility of UBS."
Further information: http://www.hsh-nordbank.com
About HSH Nordbank
HSH Nordbank AG is one of Germany's major financial institutions with
assets of EUR 207 Billion as of 30 September 2007
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