UBS Ordered to Pay $1.4 Billion Settlement for Mortgage-Backed Securities Fraud

UBS Ordered to Pay .4 Billion Settlement for Mortgage-Backed Securities Fraud


General view of the ⁢UBS building in Manhattan on June 5, 2023‌ in New⁤ York City.

Eduardo Munoz Alvarez | View Press | Corbis News | Getty Images

Swiss⁢ bank UBS agreed to pay a combined⁣ $1.4‍ billion in civil penalties over fraud and misconduct‍ in its offering of mortgage⁣ backed securities dating ​back to the global financial crisis,⁣ federal prosecutors announced Monday.

The bank, in its⁣ own⁢ statement Monday,⁢ described the settlement​ as dealing⁣ with a “legacy matter” dating from 2006 ⁢to 2007, leading up ⁢to the financial crisis.

The settlement concludes the final case brought by⁤ the ​Justice⁤ Department against a number of⁤ the largest financial institutions over misleading statements made to the purchasers of those mortgage backed securities. The cumulative recoveries in ⁣the cases now ‌total $36 billion, according to the Justice ‍Department.

In the years ‍leading up to the‍ financial crisis, investment banks packaged, securitized and sold⁢ bundles ‌of mortgages‌ to institutional⁣ buyers.​ Those…

2023-08-14 12:36:03
Link from www.cnbc.com
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