NEW YORK (Reuters) - Wells Fargo Bank, N.A. was sued Wednesday by a German government agency that accused it of mismanaging a collateralized debt obligation, resulting in more than $160 million in losses.
Wells Fargo and Collineo Asset Management GMBH, a German financial services company, allowed investments of overly risky assets not permitted under the contracts governing House of Europe Funding I Ltd, a Cayman Islands CDO issuer, according to the lawsuit filed in Manhattan federal court.
The German agency, Erste Abwicklungsanstalt, and the CDO itself both sued Wells as trustee and Collineo as asset manager for allowing the ineligible purchases.
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