Implode-o-Meter News - Probe Shows How UBS Targeted Junk Securities at German Cities

Feller had spent two years investigating the methods Simon had used to develop risky deals involving water treatment plants in the eastern German state of Saxony for UBS, a major Swiss bank. In the end, Leipzig faced potential losses of â‚¬300 million ($400 million), joining the ranks of many German municipalities that had lost vast sums of money in complex Wall Street deals.
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Internal bank documents and court records show that shortly before the financial crisis began, UBS apparently sold securities to the city of Leipzig for which the risks were almost impossible to calculate, earning a sizeable profit in the process. "The supposed transaction only served the purposes of banks and criminal racketeers and is null and void, as far as we are concerned," says current Leipzig Mayor Burkhard Jung, a member of the center-left Social Democratic Party (SPD).

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Probe Shows How UBS Targeted Junk Securities at German Cities