UBS Leads Wall Street Bid to Halt FHFA Mortgage-Bond Suit

UBS AG is seeking to block a U.S. lawsuit over billions of dollars in mortgage bonds in a case that may set back government efforts to recover losses Fannie Mae and Freddie Mac incurred in the housing crash.

UBS argued before the U.S. Court of Appeals in Manhattan today that the court should overturn a ruling allowing the Federal Housing Finance Agency to pursue its suit over losses on $6.4 billion in mortgage bonds sold to the two mortgage-finance companies.