August 14, 2023

UBS AG has agreed to pay $1.4 billion to settle a DOJ investigation alleging the financial institution and its U.S.-based affiliates defrauded investors by making false and misleading statements regarding its residential mortgage-backed securities (RMBS), which it knew largely did not hold up to loan underwriting guidelines and consumer protection laws.  During the 2008 financial crisis, 40 RMBS that UBS issued in 2006 and 2007 ultimately tanked, causing substantial losses to investors.  This settlement is the last case brought by a DOJ working group focused on failed RMBS that led to the crisis.  DOJ

Tagged in: Financial and Investment Fraud, Financial Institution Fraud,