UBS so far has failed to recover money it lost when a credit default swap it sold to a Leipzig-based water company went belly up. But the Swiss bank hasn’t given up hope yet.
Switzerland’s largest bank has asked the Supreme Court in London to accept an appeal against the earlier verdict, a spokesman of Leipziger Stadtholding (LVV) told «dpa» news agency. LVV now awaits the ruling of the court.
The legal wrangle is one of the oldest that UBS has been involved with. The waterworks in Leipzig in 2006 agreed to a complex transaction with UBS on a credit default swap. When the financial crisis hit, UBS was faced with a loss of 350 million euros and demanded the money back from the city of Leipzig.
Claim Is Rising Steadily
In a court of first instance, the claim by UBS was rejected. In the ruling of 2014, the London court said that the city of Leipzig was not liable for UBS’ loss.
With legal costs mounting and due to exchange rate fluctuations, the claim has increased to about 500 million euros.
