UBS Sued by U.S. Over $4.5 Billion in Mortgage Securities
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UBS AG was sued by the U.S. over $4.5 billion in residential mortgage-backed securities sold to Fannie Mae and Freddie Mac as regulators went to court for the first time to recoup losses caused by the investments.
The Federal Housing Finance Agency, which regulates the two mortgage companies operating under government control, sued the Swiss bank and several executives of UBS’s Mortgage Asset Securities Transactions unit in federal court in Manhattan today, claiming they misstated the securities’ risks.