UBS Pays $445 Million to Settle Mortgage Securities Probe
- Closes U.S. lawsuit accusing bank of selling faulty securities
- NCUA says sales spurred collapse of corporate credit unions
A sign sits illuminated on the roof of the UBS Group AG headquarters as light trails are left by moving traffic in this long exposure photograph taken in Zurich.
Photographer: Matthew Lloyd/BloombergUBS Group AG has paid $445 million to settle National Credit Union Administration claims that the bank contributed to the collapse of corporate credit unions by selling them faulty mortgage-backed securities, the regulator said in a statement on Monday.
NCUA said the settlement -- which Zurich-based UBS agreed to without admitting or denying wrongdoing -- closes a lawsuit filed in 2012 and is the latest in a series of deals struck with banks accused of improper sales to five corporate credit unions that failed. The agency had already recovered $79.3 million from UBS last year in a related claim.