UBS Handed Setback in $2 Billion Mortgage Buy-Back Lawsuit

Updated on
  • Judge finds problems with 13 of 20 loans examined in May trial
  • Special masters to review thousands of other loans, judge says

A UBS Group AG unit was found by a federal judge to have violated some contracts with mortgage-backed securities trusts that hold loans, putting it at risk of having to buy back more loans or pay damages in a $2 billion lawsuit.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.