UBS to Pay $1.44 Billion to Settle DOJ Mortgage-Bond Case
- The bank is fully provisioned for the $1.44 billion payment
- Settlement resolves all civil claims on UBS’s RMBS business
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UBS Group AG agreed to pay $1.44 billion to settle a long-running case over US mortgage-backed securities, resolving one of the bank’s largest outstanding legal issues as it works toward integrating Credit Suisse.
The settlement had been fully provisioned in prior periods, the Swiss bank said in a statement Monday. The case stems from a lawsuit filed by the US Department of Justice against UBS in relation to legacy residential mortgage-backed securities from 2006 and 2007 and related to the issuance, underwriting and sale of the securities, the bank said.