UBS criticized in derivatives case

Gavel

UBS lost a U.K. lawsuit over derivatives sold to Kommunale Wasserwerke Leipzig GmbH when a judge found the bank’s relationship with a firm advising the German water utility led to a conflict of interest.

Bloomberg News reports that Judge Stephen Males said a UBS employee had been aware of the conflict and knew the advisers at a Swiss consulting firm were dishonest.

The consultants, Juergen Blatz and Berthold Senf, were convicted in 2011 by a German court of bribing a KWL executive in relation to the deal.

'Neither UBS nor KWL emerges with credit from this saga,' Males wrote in a 325-page decision. 'For UBS it has been a case study in how not to conduct investment banking in an honest and fair way.'

UBS argued KWL owed about $140 million in a trial ending in July that saw mud-slinging from both sides including accounts of corruption, bribery and a party with strippers. 

Hit the link below to access the complete Bloomberg News article:

UBS Loses KWL Case as Judge Says Bank Wasn’t Honest, Fair

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