UBS Settles Charges Over Risky Mortgage Bonds
July 22, 2013 by UPI - United Press International, Inc.
WASHINGTON (UPI) — The Swiss bank UBS said Monday it had struck a deal with U.S. authorities to settle charges that it misrepresented mortgage bonds issued in 2004 through 2007.
UBS settled with the Federal Housing Finance Agency, which has accused 18 big banks of overstating the value of bundled mortgage securities in advance of the 2008 financial meltdown that was largely caused by overwhelming numbers of defaulting home loans.
Details of the agreement were not disclosed but The New York Times reported UBS said it was accepting a one-time, pretax charge of $919 million related to the settlement.
The FHFA filed the lawsuit in 2011, seeking billions of dollars in compensation from the banks. FHFA losses involving UBS loans totaled $900 million, the Times said.