UBS settles Credit Suisse legacy case in the US

UBS settles further Credit Suisse legacy in the USA Keystone-SDA

UBS has reached an agreement in the US with the US Department of Justice (DOJ) for another Credit Suisse legacy issue. As part of the settlement concerning so-called mortgage-backed securities, UBS will pay $300 million (CHF242 million), as announced on Monday.

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The mortgages in question are so-called residential mortgage-backed securities (RMBS) from the time of the financial crisis, which were also referred to as junk mortgages.

The agreement settles outstanding obligations that were already finalised in 2017 as part of a settlement between the then Credit Suisse and the DOJ. The payment of the $300 million will also settle all outstanding obligations for clients of such products, it added.

“With this agreement, UBS has resolved another of Credit Suisse’s legacy issues in line with its intention to resolve legacy issues in a timely, fair and balanced manner and in the best interests of all stakeholders,” the bank writes. In the third quarter, UBS expects the agreement to make a positive contribution in the “Non-core and Legacy” area through the release of provisions that were recognised as part of the Credit Suisse takeover.

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Translated from German by DeepL/jdp

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