Citigroup Lost $15 Million With UBS's ‘Crap' CDO Blessed by S&P

The Vertical ABS 2007-1, a mezzanine cash flow structure built with asset-backed securities underwritten by UBS AG, is one of dozens of deals listed in the Justice Department's Feb. 4 lawsuit against S&P and its parent McGraw-Hill Cos. that received the ratings firm's highest AAA grade. Internal UBS e- mails referred to CDOs "as ‘crap' at the same time that the bank was selling...