UBS (NYSE: UBS) has agreed to a $300 million settlement with the Department of Justice that will settle the legacy Credit Suisse case regarding the improper sales of residential mortgage-backed securities (RMBS) prior to the 2008 financial crisis.
The Swiss-headquartered lender announced the settlement honors the “outstanding obligations under a 2017 agreement Credit Suisse reached with the DOJ.” UBS acquired Credit Suisse in 2023.
“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,” said the bank in a statement, adding that it expected 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.”
In August 2023, UBS and several of its U.S.-based affiliates agreed to a $1.4 billion settlement to resolve a civil action filed in November 2018 related to bank’s RMBS underwriting and issuance from 2006 and 2007.
Photo: Martin Abegglen / Flickr Creative Commons
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