No One Told UBS Banker Strippers, Safari Rides Were Off The Table

Author:
Updated:
Original:

And he's worked in a lot of offices, so.

A German water utility alleged a former UBS AG (UBSN) banker had an “inappropriate” relationship with consultants advising on disputed swap deals, the latest lawsuit to highlight how complex financial instruments backfired on municipal agencies during the 2008 financial crisis. Kommunale Wasserwerke Leipzig GmbH said in court documents that Steven Bracy, the banker at the center of the allegations, booked strippers for consultants at Swiss firm Value Partners and went on an African safari with them. That happened even as KWL was negotiating on its derivative transactions with UBS. KWL made the allegations in its response to a lawsuit filed by UBS, in which the bank is seeking $138 million under so-called credit protection agreements from 2006 and 2007. The utility argues in court documents that the close relationship between the bank and the consultants creates a conflict of interest that invalidates the deal. Bracy is scheduled to testify at the trial in London today...

Bracy, then a UBS employee, “appears” to have asked another man in 2006 to arrange for four strippers to be paid $5,600 each, KWL said in court documents. Later that year, Value Partners invited Bracy and another UBS employee to go on a “luxury safari” in South Africa to discuss a further business opportunities. Deals with the utility led to German bribery convictions for the consultants, Juergen Blatz and Berthold Senf, over allegations that began before UBS’s involvement.

UBS Banker in Swap Deal Arranged for Strippers, Utility Says [Bloomberg]

Related