UBS Sued by U.S. Regulator for $1.1 Billion in Faulty MBS Sales
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UBS AG is being sued by the U.S. regulator of credit unions for improper sales of $1.1 billion in faulty securities that contributed to two firm failures, the National Credit Union Administration said.
The lawsuit accuses the UBS Securities LLC unit of the Zurich-based bank with selling residential mortgage-backed securities that were “all but certain to become delinquent or default” soon after the sale, according to NCUA’s complaint dated today. Two wholesale credit unions -- U.S. Central Federal Credit Union and Western Corporate Federal Credit Union --failed after buying the products, the agency said.