UBS blamed in US trial for $2.1 billion in mortgage bond losses
On Monday, UBS AG went to trial over the $2.1 billion in losses that investors incurred on mortgage-backed securities after the collapse of the U.S. housing market.
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UBS AG has agreed to pay $69.8 million to NCUA in settling a lawsuit centering selling of faulty residential mortgage based securities. Prior to that, Royal Bank of Scotland, Barclays, Wachovia, Morgan Stanley and other accused financial institutions have also settled respective lawsuits with NCUA. However, all the settlements have taken place through realization of incurred losses from the faulty RMBS products.
According to court papers, UBS AG has agreed to pay $33 million to resolve a U.S. regulator's claims that it sold toxic mortgage-backed securities to credit unions that later failed.
The UBS tax probe has ended after five years. However, the Swiss bank may be facing huge penalty and trial after the French judges decided on the case.
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