UBS prepares to fight US mortgage-backed securities lawsuit
UBS says the DOJ is likely to seek “unspecified monetary civil penalties” dating back to 2006 and 2007.
Keystone
UBS Group AG, Switzerland’s largest bank, says it will “vigorously” contest a United States Department of Justice lawsuit concerning mortgage-backed securities it sold in the run-up to the 2008 global financial crisis.
This content was published on
1 minute
swissinfo.ch/sb
In a statement issued on WednesdayExternal link, UBS said it had been advised that the DOJ intends to file a civil complaint as early as Thursday “related to UBS’s issuance, underwriting and sale of residential mortgage-backed securities (RMBS) more than a decade ago”.
UBS said the DOJ is likely to seek “unspecified monetary civil penalties” dating back to 2006 and 2007.
The Swiss bank said, “The DOJ’s claims are not supported by the facts or the law. UBS will contest any such complaint vigorously in the interest of its shareholders. UBS is confident in its legal position and has been fully prepared for some time to defend itself in court.”
Numerous banks have already paid out billions of dollars in penalties following civil cases brought by the DOJ under the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA).
After the financial crisis, banks were accused of misleading investors concerning loans underlying the mortgage-backed securities they sold, with loans made to borrowers who were unable to repay them and based on inflated home evaluations.
Popular Stories
More
Multinational companies
Azeri fossil-fuel cash cow brings controversy to Switzerland
Swiss price watchdog slams excessive prices for generic medicines
This content was published on
The cheapest generic medicines available in Switzerland are more than twice as expensive as in other countries, according to a study by the Swiss price watchdog.
Nature should not figure in net zero calculations: academic study
This content was published on
The natural removal of CO2 from the atmosphere by forests or oceans should not be included in the net-zero balance of climate protection measures, argue researchers.
This content was published on
None of the 15 major Swiss retail banks is meeting international climate and biodiversity targets, according to a ranking by WWF Switzerland.
This content was published on
Nestlé's new CEO Laurent Freixe, has presented plans for the future of the world's largest food company, after his first few weeks in office.
Swiss foreign minister calls on Moscow to end Ukraine war
This content was published on
It's high time Moscow ended its war against Ukraine, Swiss foreign minister Ignazio Cassis tells the UN Security Council.
This content was published on
The only alternative to the UN Palestinian agency’s work in Gaza is to allow Israel to run services there, Philippe Lazzarini, UNRWA Commissioner-General, told reporters in Geneva on Monday.
Study reveals food culture differences between Switzerland and neighbours
This content was published on
Three-quarters of Swiss people consider eating to be a pleasurable, social activity, a new survey reveals. Healthy eating, however, plays a much less important role, it found.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
UBS moves back into battle for rich Americans
This content was published on
UBS is putting super-rich Americans at the centre of its new growth strategy, nearly a decade after it was fined by the United States.
This content was published on
The big Swiss bank UBS fell victim to its high-risk strategy of expansion in the US market when the financial crisis erupted ten years ago.
French court scraps UBS request to drop money laundering charges
This content was published on
A French constitutional court rejected a request by Switzerland’s largest bank, UBS, to drop money laundering charges and limit proceedings to complicity in tax fraud.
Credit Suisse agrees to $5.3 billion mortgage settlement with US
This content was published on
Credit Suisse has agreed in principle to pay US authorities $2.48 billion (CHF2.54 billion) to settle claims it misled investors in residential mortgage-backed securities it sold in the run-up to the 2008 financial crisis, the Swiss bank announced on Friday.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.