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Sept. 29 (Bloomberg) -- UBS AG received a U.S. federal subpoena last month seeking records related to its residential mortgage-backed securities business during the boom in sub-prime lending.
The U.S. attorney’s office for the Eastern District of New York asked in August for documents and information about the RMBS business from 2005 through 2007, the Zurich-based bank said in a prospectus to shareholders today. The New York state attorney general is seeking similar data, UBS said.
UBS said it has also been responding to inquiries from the special inspector general for the Troubled Asset Relief Program, together with the U.S. attorney’s office in Connecticut and the Justice Department. The inspector general and the Securities and Exchange Commission are questioning the bank over trading practices in connection with mortgage-backed securities from 2009 through the present, UBS said.
The bank said it’s cooperating with the authorities, adding that “numerous other banks reportedly are responding to similar inquiries from these authorities.”
In January, UBS and 12 other banks were sued in Virginia over claims they misled the state’s retirement system over mortgage-backed securities sales. The complaint, which is seeking $1.15 billion, was sealed and made public this month.
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