UBS Said to Weigh Court Battle With DOJ Over Mortgage Bond Probe
- Bank said to consider trial if settlement request is too high
- Barclays has already been sued in court by Justice Department
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UBS Group AG is weighing the option of going to court with the U.S. Justice Department over allegedly deceiving investors who bought mortgage-backed securities, according to three people familiar with the discussions.
While UBS currently isn’t holding formal negotiations with the DOJ and the fact-finding process hasn’t been completed, the company is considering letting the case go to court if a settlement figure exceeds what the bank considers reasonable, said two of the people, who spoke on condition of anonymity because the deliberations are private. The bank has already provisioned $1.4 billion for the probe and other mortgage-related matters.