UBS to pay $1.4 billion fine in US

The US Department of Justice announced that Switzerland-based UBS bank has agreed to pay $1.435 billion to settle a “fraud” case in the sale of residential mortgage-backed securities. In a statement, the US Department of Justice reminded that, following an extensive investigation, the US filed a complaint alleging that UBS defrauded investors in connection with the sale of 40 residential mortgage-backed securities issued in 2006 and 2007. The complaint alleged that UBS knowingly made false and misleading statements to purchasers of these securities, and the statement noted that the lawsuit filed against UBS and its US-based affiliates in 2018 regarding the said allegation had been concluded. The statement noted that UBS agreed to pay a penalty of $1.435 billion to settle the case. The statement from the Justice Department stated that the claims concluded in the settlement were merely allegations and that no liability had been determined.