UBS Paid $1.435 Billion to Resolve RMBS Fraud Claims
Company: UBS Group AG
Summary
In August 2023, UBS AG and several U.S. affiliates agreed to pay $1.435 billion in civil penalties to resolve a U.S. Department of Justice lawsuit concerning residential mortgage-backed securities issued in 2006 and 2007. The government alleged that UBS knowingly made false and misleading statements to buyers of 40 RMBS about the characteristics of the underlying mortgage loans. The settlement resolved the final case brought by the DOJ working group investigating misconduct in the creation and sale of RMBS before the financial crisis. The settlement resolved allegations and did not constitute a judicial determination of liability. Source: U.S. Department of Justice https://www.justice.gov/usao-edny/pr/ubs-agrees-pay-1435-billion-resolve-claims-it-made-misrepresentations-sale-residential