German Landesbank HSH Nordbank and Barclays have resolved out of court a law suit HSH brought against Barclays over collateralised debt obligations (CD0s) the British bank sold to the German bank.
HSH Nordbank, the state bank for the city of Hamburg and the state of Schleswig-Holstein in northern Germany, sued Barclays last September to retrieve a $151 million investment in the CDO known as Corvus Investments. The settlement includes Corvus and other CDO investments that Barclays sold to HSH. A HSH statement from last September said one of its predecessors, Hamburgische Landesbank, invested in two other CDOs worth $420 million.
A HSH document seen by Reuters shows that the German bank had invested in at least five CDOs structured by Barclays. HSH and Barclays’ joint statement on Monday for the Corvus legal resolution did not disclose the amount of settlement involved.
HSH Nordbank was created in June 2003 through the merger of Hamburgische Landesbank and Landesbank Schleswig-Holstein (LB Kiel). LB Kiel bought the Corvus notes from Barclays in 2000.
The Corvus court case was scheduled to start in London courts on Monday.