United States Department of Justice (DOJ) Agrees UBS $300 Million Settlement to Resolve Outstanding Obligations on 2017 Credit Suisse Agreement for Residential Mortgage-Backed Securities (RMBS) Business, UBS Separately Paid $1.43 Billion Settlement in 2023 for Fraud in Sale of Residential Mortgage-Backed Securities Issued in 2006 & 2007
4th August | Hong Kong
The United States Department of Justice (DOJ) has agreed to UBS $300 million settlement to resolve outstanding obligations on 2017 Credit Suisse agreement for the Residential Mortgage-Backed Securities (RMBS) business. Separately in 2023 August, UBS agreed to pay $1.435 billion settlement (filed in 2018) for fraud in sale of Residential Mortgage-Backed Securities (RMBS) issued in 2006 & 2007, with a total of $36 billion in civil penalties (Residential Mortgage-Backed Securities) including from Citigroup, HSBC, Credit Suisse, Goldman Sachs, JP Morgan, Morgan Stanley, Bank of America, Wells Fargo, Barclays, Royal Bank of Scotland, Deutsche Bank, Nomura, Societe Generale, Moody’s, S&P and General Electric. In 2024 August, UBS filed a $200 million lawsuit against Bank of America for refusing to cover legal costs relating to subprime mortgages issued before the 2008 Global Financial Crisis. UBS had packaged the mortgages from Countrywide Financial with Countrywide agreeing to indemnify against claims if the mortgages were poorly or fraudulently underwritten. Bank of America bought the UBS packaged mortgage securities in 2008. Countrywide Financial was the largest United States lender to subprime borrowers. In 2013, UBS reached a $885 million settlement with the US Federal Housing Finance Agency, and a private settlement with the Federal Home Loan Bank of San Francisco in 2016 for Countrywide mortgages. Many lawsuits had been filed since 2008 against lenders of subprime mortgages. UBS (4/8/25): “UBS is pleased to announce that it has reached an agreement with the United States Department of Justice (DOJ) to resolve a legacy matter related to outstanding obligations under a 2017 agreement Credit Suisse reached with the DOJ for its legacy Residential Mortgage-Backed Securities (RMBS) business. On 1 August 2025, Credit Suisse Securities (USA) LLC entered into an agreement with the DOJ to resolve all of Credit Suisse’s outstanding Consumer Relief Obligations under the 2017 settlement by paying USD 300m. With this agreement, UBS has resolved another of Credit Suisse’s legacy issues, in line with its intention to resolve legacy matters at pace in a fair and balanced way and in the best interest of all its stakeholders. In the third quarter of 2025, UBS expects to recognize a credit in Non-core and Legacy from the release of the contingent liability established with the acquisition of Credit Suisse as part of the purchase price allocation process.” United States Department of Justice (14/8/23): “Following an extensive investigation, the United States filed a complaint alleging that UBS defrauded investors in connection with the sale of 40 RMBS issued in 2006 and 2007. The complaint alleged that UBS knowingly made false and misleading statements to buyers of these securities relating to the characteristics of the mortgage loans underlying the RMBS in violation of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). The FIRREA claims were based on alleged violations of the mail, wire, and bank fraud statutes … … The government’s complaint alleged that contrary to UBS’ representations in publicly filed offering documents, UBS knew that significant numbers of the loans backing the RMBS did not comply with loan underwriting guidelines that were designed to assess borrowers’ ability to repay. The complaint further asserted that UBS knew that the property values associated with a significant number of the securitized loans were unsupported, and that significant numbers of the loans had not been originated in accordance with consumer protection laws. UBS was allegedly aware of these significant problems because it had conducted extensive due diligence on the underlying loans prior to the RMBS being issued to determine whether the loans were consistent with representations that would be made to investors. Ultimately, the 40 RMBS sustained substantial losses.” Read – The UBS Settlement.
“ United States Department of Justice (DOJ) Agrees UBS $300 Million Settlement to Resolve Outstanding Obligations on 2017 Credit Suisse Agreement for Residential Mortgage-Backed Securities (RMBS) Business, UBS Separately Paid $1.43 Billion Settlement in 2023 for Fraud in Sale of Residential Mortgage-Backed Securities Issued in 2006 & 2007 “
UBS Files $200 Million Lawsuit Against Bank of America for Refusing to Cover Legal Costs Relating to Subprime Mortgages Issued Before 2008 Global Financial Crisis, UBS Had Packaged Mortgages from Countrywide Financial with Countrywide Agreeing to Indemnify Against Claims if Mortgages Were Poorly or Fraudulently Underwritten, Bank of America Bought the UBS Packaged Mortgage Securities in 2008, Countrywide Financial was the Largest United States Lender to Subprime Borrowers, Lawsuits Had been Filed Since 2008 Against Lenders of Subprime Mortgages
1st August 2024 – UBS has filed a $200 million lawsuit against Bank of America for refusing to cover legal costs relating to subprime mortgages issued before the 2008 Global Financial Crisis. UBS had packaged the mortgages from Countrywide Financial with Countrywide agreeing to indemnify against claims if the mortgages were poorly or fraudulently underwritten. Bank of America bought the UBS packaged mortgage securities in 2008. Countrywide Financial was the largest United States lender to subprime borrowers. In 2013, UBS reached a $885 million settlement with the US Federal Housing Finance Agency, and a private settlement with the Federal Home Loan Bank of San Francisco in 2016 for Countrywide mortgages. Many lawsuits had been filed since 2008 against lenders of subprime mortgages.
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