HSH Nordbank AG, the German regional lender, settled a lawsuit it filed against UBS AG over losses on a collateralized debt obligation linked to the U.S. subprime-mortgage market, Bloomberg News reported yesterday. HSH Nordbank, based in Hamburg, sued UBS in February 2008 over losses on a CDO called North Street 2002-4. HSH Nordbank said in the suit that its predecessor, Landesbank Schleswig- Holstein, lost almost all of the $500 million it invested in the CDO in March 2002. HSH Nordbank is one of a group of regional German lenders that have sued in New York courts over mortgage-backed securities. It sued Bank of America Corp. in New York State Supreme Court in December over $218 million in such investments, and has filed suits against Barclays Plc, Goldman Sachs Group Inc. and Morgan Stanley in the same court.
